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TERRORISM RISK INSURANCE Market Challenges May Exist for Current Structure and Alternative Approaches (en Inglés)
Accountability Office, U. S. Government (Autor)
·
Createspace Independent Publishing Platform
· Tapa Blanda
TERRORISM RISK INSURANCE Market Challenges May Exist for Current Structure and Alternative Approaches (en Inglés) - Accountability Office, U. S. Government
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Reseña del libro "TERRORISM RISK INSURANCE Market Challenges May Exist for Current Structure and Alternative Approaches (en Inglés)"
Under the Terrorism Risk Insurance Act's (TRIA) current structure, insurers manage their terrorism exposure to cover their share of losses and not the federal share of losses, which may be recouped from policyholders after an event . Specifically, insurers do not assume the risk of the federal share of potential losses and, thus, do not consider the potential federal share of losses in how the y manage their terrorism risk exposure and price coverage. Many insurers include a nominal charge for terrorism risk coverage, if they charge for it at all. Most insurers manage their exposure by limiting t he amount of coverage they provide in certain geographic areas. Under the current structure, in some scenarios f ederal losses must be recouped through premium surcharges on policyholders with TRIA -eligible insurance coverage after a certified terroris m eve nt. However, depending on the size of the terrorism event and the aggregate premiums of affected insurers, the federal government may not be required to recoup all of its losses. To date, no terrorism events have been certified under TRIA.
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