Author : United States. Government Accountability Office
Publisher : Createspace Independent Publishing Platform
ISBN 13 : 9781973922599
Total Pages : 124 pages
Book Rating : 4.9/5 (225 download)
Book Synopsis Terrorism Risk Insurance, Market Challenges May Exist for Current Structure and Alternative Approaches : Report to Congressional Committees by : United States. Government Accountability Office
Download or read book Terrorism Risk Insurance, Market Challenges May Exist for Current Structure and Alternative Approaches : Report to Congressional Committees written by United States. Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2017-07-25 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Why GAO Did This Study After the terrorist attacks of September 11, 2001, insurers generally stopped covering terrorism risk because losses could be too high relative to the premiums they could charge. Congress enacted TRIA to share losses from a certified act of terrorism between insurers and the government, address market disruptions, and help ensure widespread availability and affordability of terrorism coverage. TRIA does not include an up-front federal charge for the government's share of potential losses. The act mandates that, when private industry's losses are below a certain amount, the federal government recoups some or all of the federal share of losses through policyholder surcharges. The Terrorism Risk Insurance Program Reauthorization Act of 2015 includes a provision for GAO to review alternative funding approaches for TRIA. Among other things, this report examines (1) how insurers manage their terrorism exposure and federal recoupment of losses, (2) how alternative funding approaches could be designed and implemented, and (3) the potential effects of these approaches as well as the current structure. To assess these funding approaches, GAO reviewed related studies, analyzed several terrorism loss scenarios for each funding approach to estimate potential effects on market participants, and interviewed industry participants.