The Role Of Insurance In Managing Extreme Events: Implications For Terrorism Coverage
- Topics:
- Enterprise Risk Management
- Tags:
- Business Operations,
- Corporate Insurance,
- Event,
- Finance,
- Financial Planning,
- Insurance,
- Salon Media Group,
- Terrorism
- Source:
- Salon Media Group
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Overview: A key question being raised since September 11th is the appropriate role of the private and public sectors in reducing losses and offering insurance protection against extreme risks such as natural disasters, technological accidents and terrorist activities. Two conditions must be met before insurance providers are willing to offer coverage against an uncertain event. Condition 1 is the ability to identify and quantify, or estimate, the chances of the event occurring, and the extent of losses likely to be incurred when providing different levels of coverage. Condition 2 is the ability to set premiums for each potential customer or class of customers. This paper has addressed the question as to the appropriate role of the public and private sectors in reducing the likelihood and consequences of future extreme events through protective measures as well as providing insurance to cover losses should a disastrous event occur.
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Format: PDF | Size: 160KB | Date: Jan 2003 | Pages: 15
