National Security Perspectives on Terrorism Risk Insurance in the United States

National Security Perspectives on Terrorism Risk Insurance in the United States

Henry H. Willis
Omar Al-Shahery
Copyright Date: 2014
Published by: RAND Corporation
Pages: 24
https://www.jstor.org/stable/10.7249/j.ctt6wq804
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  • Book Info
    National Security Perspectives on Terrorism Risk Insurance in the United States
    Book Description:

    Congress enacted the Terrorism Risk Insurance Act (TRIA) in 2002, in response to terrorism insurance becoming unavailable or extremely costly in the wake of the 9/11 attacks. TRIA is set to expire at the end of 2014, and Congress is considering the appropriate government role in terrorism insurance markets. This policy brief examines the potential national security implications of allowing TRIA to expire.

    eISBN: 978-0-8330-8538-2
    Subjects: Political Science, History, Business

Table of Contents

  1. National Security Perspectives on Terrorism Risk Insurance in the United States
    (pp. 1-24)
    Henry H. Willis and Omar Al-Shahery

    When the tragic terrorism events of September 2001 took the world by surprise, insurance markets were caught unprepared. Terrorism risk insurance quickly became unavailable or, when offered, extremely costly. Congress reacted to the contraction of terrorism insurance markets by passing the Terrorism Risk Insurance Act (TRIA), which provided a government reinsurance backstop in the case of a terrorist attack by providing mechanisms for avoiding an immediate drawdown of capital for insured losses or possibly covering the most extreme losses.

    Extended first in 2005 and again in 2007, TRIA is now set to expire at the end of 2014, and Congress...