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Topic: Terrorism insurance

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	The Federalist Society (Site not responding. Last check: 2007-10-12)
		To keep these people from having to self-insure terrorism risk, the insurance industry proposes transferring that risk to the taxpayers, most of whom are far less wealthy than the beneficiaries, are not proper subjects to bear terrorism risk at all, and have never agreed to bear or been compensated for bearing that risk.
		The insurance industry proposal might have appeal if it were but a small step from private insurance for terrorist acts to government insurance, with the Government intervening simply to provide the required breadth of risk sharing.
		In a world without terrorism insurance the owners of a REIT would clearly know they are bearing the risk of terrorism, and it would be perfectly appropriate to see REITs take losses of 2% or 5% in a major terror attack rather than have taxpayers step in with a coercive bailout.
	www.fed-soc.org /Publications/Terrorism/insurance.htm (3574 words)

	Should the Federal Government Backstop Insurance Industry Terrorism Coverage? (Site not responding. Last check: 2007-10-12)
		Terrorism was simply not considered a significant peril (cause of loss) in the pre-September 11 rating and underwriting of insurance in the United States.
		Accordingly, terrorism was not identified as a separate peril in insurance policies, nor was any significant premium charged for terrorism risk (losses from prior events would have been included in rate calculations, but they were de minimis relative to the total losses over time for the insurance coverages in question).
		Insurance company policy forms are regulated in each state, most of which require that forms cannot be changed without the approval of the state insurance departments.
	www.fed-soc.org /Publications/Terrorism/insurance1.htm (4054 words)

	PIFC - Insurance Reference Manual
		Insurance losses attributable to terrorist acts under these commercial policies are insured by private insurers and reinsured or "backstopped" by the federal government pursuant to the Terrorism Risk and Insurance Act of 2002 (TRIA).
		For the terrorism coverage to be triggered under TRIA for commercial policies, a terrorist attack has to be declared a "certified act" by the Secretary of the Treasury.
		Business interruption insurance (sometimes referred to as business income coverage) covers financial losses that occur when a firm is forced to suspend business operations either due to direct damage to its premises or because civil authorities limit access to an area after the attack and those actions prevent entry to the business premises.
	www.pifc.org /insurance/terror_ins.html (2320 words)

	Terrorism Insurance Market Post 9/11
		Prior to 9/11 insurance companies considered the risk of terrorism to be so low that they bundled the related coverage into their general property and casualty policies (Hillman, p.
		In cases where the primary insurer still has to provide terrorism coverage, insurers are forced to shoulder 100% of the capital risk, prior to 9/11 they were exposed to roughly a third of the total risk.
		Terrorism Insurance Coverage in the Aftermath of Sept. 11
	www.whisprwave.com /msu-hs-class/terrorism-insurance.htm (1206 words)

	Taxpayers for Common Sense BAILOUT WATCH: Terrorism Insurance (Site not responding. Last check: 2007-10-12)
		Insurance executives told Congress that the government needed to act before December 31, 2001, when about 70% of U.S. commercial policies containing terrorism insurance clauses were set to expire.
		Because traditional terrorism insurance was too unpredictable to price accurately, alternatives quickly developed to replace it, including self-insurance, layering, creation of different subsidiaries, and securitization of risk.
		Unlike the airline bailout, where the government acted quickly, terrorism insurance legislation was held up in Congress and as a result, the undisturbed insurance market adjusted on its own.
	www.taxpayer.net /bailoutwatch/terrorisminsurance.htm (793 words)

	Insure America Against Terrorism
		Some form of federal terrorism insurance mechanism must remain in place to ensure continued marketplace stability, to keep the existing economic safety net in place, and to allow time for public policymakers to determine the most appropriate, long-term solution to the terrorism insurance issue.
		A federal terrorism insurance mechanism is not a bailout.
		The federal terrorism insurance mechanism is a public/private risk-sharing partnership between the federal government and the commercial property-casualty insurance industry.
	www.terrorism-insurance.org (491 words)

	Risk and Insurance JULY CHOICE STORY: Terrorism Insurance: Where's the Coverage? (Site not responding. Last check: 2007-10-12)
		That's because fire insurance is protected by state laws that limit an insurer's ability to exclude the coverage.
		It's created quite a dislocation in the insurance marketplace because you've had insurers who no longer have the cover in their reinsurance contracts but are faced with providing the coverage on their retail policies.
		In a report issued in March, Swiss Re officials speculate that it could take three to five years for the private insurance industry to develop the means to cover terrorism, using an approach that is similar to that used with natural catastrophe risks.
	www.riskandinsurance.com /0702choice.asp (2302 words)

	TRIA Make Available Provision
		However, the provision in TRIA which mandates that insurance companies “make available” terrorism insurance on the same terms and conditions as property and casualty insurance expires at the end of 2004.
		Policyholders are now increasingly concerned that terrorism insurance will again become scarce because, even though the terrorism insurance program does not technically expire until December 31, 2005, there are several facts that could result in the program expiring in fact a year earlier than its statutorily prescribed termination date.
		Therefore, although the general terrorism insurance program remains in effect until 2006, the combination of these factors is causing policyholders to conclude that it will be increasingly difficult to obtain terrorism insurance coverage as early as later this year.
	www.rer.org /terrorisminsurance/TRIA_Make_Available.cfm (523 words)

	Terrorism Insurance: Pray As You Go - CFO.com (Site not responding. Last check: 2007-10-12)
		Terrorism Insurance: Pray As You Go Without a government safety net, companies are left with little coverage against terrorist attacks.
		Companies are left with two options: a separate terrorism policy offering modest limits of protection (up to $150 million), or an add-on to their current policies that provides marginal coverage (about $5 million) through a separate limit of protection--if the insurer is willing to offer it.
		The insurance industry maintains that unless the government steps in at some point to share catastrophic terrorism risks, the status quo is likely to remain.
	www.cfo.com /printarticle/0,5317,6633\|,00.html (1789 words)

	Realty Times - Real Estate News and Advice
		While the concept of terrorism insurance is somewhat new to the United States, our cousins across the pond in the United Kingdom have carried terrorism riders for decades.
		The insurance industry would be responsible for damages only after the pool is fully capitalized and only up to 80 percent of the claims.
		Once that is firmly in place, it's fair to spread the risk as widely as possible, with the insurance industry acting as the second buffer, and the government acting strictly as an insurer of last resort," Weiss said.
	realtytimes.com /rtcpages/20011115_insurance.htm (1056 words)

	BNET.com - Recent Terrorism Insurance White Papers (Site not responding. Last check: 2007-10-12)
		Terrorism risk is not an ordinary case, however, because it fails to meet the basic criteria of insurability.
		The causes of terrorism and conflict are very complex, often related to grievances associated with perceived social and economic injustices, the quest for political power and ideological, ethnic or religious motivations.
		The prevention of conflict and terrorism (C - T hereafter) is a very complex task that involves a combination of resources, intelligence capacities, institutional reforms that foster a culture of dialogue and peaceful resolution of conflict.
	jobfunctions.bnet.com /xml/RSS-1701.xml (563 words)

	What is Terrorism Insurance?
		Terrorism insurance protects the individuals and the businesses against the potential losses and liabilities due to the acts of terrorism.
		But, the terrorism insurance is not specifically mentioned in the standard homeowners insurance policy.
		Under TRIA (2002) it has been mentioned that, the owners of the business/commercial property must be offered the terrorism insurance to purchase to protect their buildings, factories, apartments.
	www.ampminsure.org /terrorism/index.html (208 words)

	An Overview of the Terrorism Risk Insurance Act of 2002
		The Act renders all existing policy terrorism exclusions null and void, and requires all property and casualty insurers to offer policyholders terrorism insurance for two years (which, at the Treasury Secretary's discretion, may be extended an additional year).
		The terrorism coverage offered must not "materially differ from the terms, amounts, and other coverage limitations applicable to losses arising from events other than acts of terrorism." When offered, the terrorism coverage premium and the existence of the federal backstop must be clearly and conspicuously disclosed to policyholders.
		The Act does not impact state insurance law except (1) to establish the definition of terrorism, and (2) to make terrorism coverage (and the forms and rates for it) effective without prior state approval or waiting period (until December 31, 2003).
	library.findlaw.com /2002/Dec/1/132487.html (1313 words)

	RAND Center for Terrorism Risk Management Policy
		The debate over government in markets for terrorism insurance should go beyond the question of whether private markets are sufficient and consider its national security aspects. If terrorism insurance enhances economic resilience after an attack, then there is a strong rationale for government intervention, above and beyond what private markets can offer.
		By increasing resilience after terrorist attacks, demonstrating solidarity with victims, and affecting incentives for security precautions, government support of terrorism insurance and compensation may be an important element of counterterrorism strategy, particularly as terrorists increasingly focus on economic targets.
		The National Symposium on the Future of Terrorism Risk Insurance, cosponsored by CTRMP in June 2005 on the campus of the University of Southern California, brought together many of the nation’s leading experts to discuss the relationship between terrorism risk, insurance, national security and public policy.
	www.rand.org /multi/ctrmp (1020 words)

	IRMI - Terrorism Insurance Update 2003
		The panel, which included Joe Wojdula, manager of Corporate Insurance for Motorola, Jim Lewis, president and CEO of CNA Property and Casualty Operations, and Dan Rockwell, senior vice president of Property for CNA, essentially concluded that, while it is far from solved, the terrorism risk and insurance problem is much reduced from a year earlier.
		The Hiscox policy covers foreign and domestic terrorism with a capacity through their extranet of up to $25 million per building (multiple locations can be covered under a single policy).
		In my mind, the terrorism challenge is the more important of the two because it will be with us forever and it influences the entire business climate in the nation, and perhaps the world.
	www.irmi.com /Insights/Articles/2003/Gibson06.aspx (2055 words)

	Treasury Report on Terrorism Insurance: Exec Summary (Site not responding. Last check: 2007-10-12)
		As a consequence of more policyholders paying for terrorism risk insurance, the average cost of such coverage increased from 1.2 percent of premium in 2002 to 1.6 percent in 2003, and further to 1.7 percent of premium by 2004.
		Among policyholders who reported paying for terrorism coverage, cost declined steadily over the period: from 4.0 percent of premium in 2002 to 2.8 percent in 2003 and further to 2.7 percent of premium in 2004.
		The likely capacity of the property and casualty insurance industry to offer insurance for terrorism risk after expiration of the program is the primary focus of Chapter 7 of the report.
	www.insurancejournal.com /news/national/2005/06/30/56784.htm (2101 words)

	Terrorism Insurance (Site not responding. Last check: 2007-10-12)
		At the end of 2005, Congress passed the Terrorism Risk Insurance Extension Act (TRIEA), which extended the federal terrorism insurance backstop program for an additional two years, but also increases reliance on the insurance sector to cover more of the losses stemming from a terrorist attack.
		Terrorism insurance availability is critical to financing commercial real estate development, particularly in densely populated areas that are perceived to be terrorist targets.
		In September, the PWG released a report which provided evidence that the terrorism insurance market had improved and that affordable coverage was available, but did not make any recommendations as to the programs future.
	www.realtor.org /fedistrk.nsf/0/7ff7b5c2220f678885256b4a006754e1 (230 words)

	Terrorism Insurance Act Expiring as Congress Debates
		The Terrorism Risk Insurance Act (TRIA), passed by Congress in 2002, mandates that the government assume responsibility for claims from a terrorist attack if the damage claims exceed $5 million dollars, and if the Treasury Secretary deems the incident to fit the definition of a terrorist attack.
		The government recoups its losses through what is called "terrorism insurance risk-spreading premiums." This means the insurance provider spreads out the costs by subjecting policyholders to a premium surcharge, up to a cap of 3 percent of the affected claim.
		The Consumer Federation of America stated that the insurance industry has reported record gains and reserves since 2002, and that "taxpayers should no longer be required to give away billions of dollars in free reinsurance to an industry that is financially flush.
	www.consumeraffairs.com /news04/2005/terrorism_insurance.html (1478 words)

	Marsh - 2006 Terrorism Insurance Market
		Despite uncertainties over what terrorism insurance markets will look like in the not-too-distant future, businesses from every industry sector continue to purchase an ever-increasing amount of coverage.
		However, the long-term situation is unclear as the Terrorism Risk Insurance Extension Act (TRIA) is set to expire at the end of 2007.
		View a 10-minute briefing on property terrorism insurance, including the changes to the Terrorism Risk Insurance Act in its 2005 extension and the stand-alone terrorism insurance marketplace.
	solutions.marsh.com /terrorisms (296 words)

	Insurer Terrorism - Insurance - CFO.com
		Besides providing insurers with a structure in which their losses would be limited, the act bought them time to spawn models of the risk, setting the stage for them to create a potentially lucrative pricing structure for the future.
		Besides protecting carriers from added exposure, "the filings demonstrate that the insurance industry is not yet willing to assume the full risk of terrorism losses at this time," said Mills, who's also chairman of the National Association of Insurance Commissioners' terrorism insurance working group.
		Further, prices are rising, and insurers' capacity to cover terror risks in major cities is shrinking, she said.
	www.cfo.com /article.cfm/3961022?f=related (667 words)

	Industry to Congress: Permanent Solution to Terrorism Insurance Vital
		The Independent Insurance Agents and Brokers of America (the Big "I") said a continued federal role is needed to ensure the availability of terrorism risk insurance, and it is essential for the federal government to look ahead now, before backstop legislation expires.
		Congress passed the Terrorism Risk Insurance Act (TRIA) in 2002 and its extension in 2005, but the legislation is scheduled to expire Dec. 31, 2007.
		Case said AON supports the concept of a terrorist insurance pool that would be financed by participating insurers, each of which would contribute a percentage of written premium for all lines of insurance covered by the program.
	www.insurancejournal.com /news/national/2006/09/27/72845.htm (1602 words)

	RAND \| Hot Topics \| Terrorism Risk Insurance Act
		The terrorism insurance system in the United States is failing to provide businesses with adequate financial protection, leaving the nation vulnerable to economic disruption if there is a major terrorist attack.
		The authors examine the performance of the compensation system — insurance, tort, government programs, and charity — in responding to the losses stemming from 9/11.
		The RAND Center for Terrorism Risk Management Policy provides research to inform public and private decisionmakers on economic security in the face of the terrorism threat.
	www.rand.org /hot_topics/tria.html (420 words)

	Future Cloudy for Terrorism Insurance, Future Becomes Cloudy for Terrorism Insurance, 5 Years After September 11 ...
		If Congress decides the government has no business helping private insurers absorb terrorism losses, advocates seeking a continued government role warn coverage may revert back to what it was just after 9/11 _ hard to find, expensive, and out of reach for most property owners.
		At issue is the Terrorism Risk Insurance Act, which took effect in November 2002 after insurers' costs from the Sept. 11 attacks climbed to an estimated $32 billion.
		While some insurers continued writing their own stand-alone terrorism policies without federal back-up, the government agreed to reimburse insurers up to $100 billion under the so-called TRIA law should foreign terrorists strike again _ a pledge criticized by some as an unwarranted favor to the industry.
	www.cbsnews.com /stories/2006/09/03/ap/business/mainD8JTJ6N01.shtml (846 words)

	Does your insurance cover terrorism?
		State Farm Insurance Co. insures more houses in the country than anyone else; more than one in five U.S. homeowners have their policies with them.
		Virtually all insurance policies exclude losses arising out of nuclear explosions, radiation and contamination, says Bill Wilson, director of the Independent Insurance Agents and Brokers of America's Virtual University, an information resource for the insurance industry.
		Under the Terrorism Risk Insurance Act, which has no impact on homeowners insurance, it takes agreement from the Secretary of State, the Secretary of the Treasury and the Attorney General to decide if an act is considered terrorism.
	www.bankrate.com /brm/news/insur/20030324a1.asp (703 words)

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