Thomas Russell & Jeffrey E. Thomas
Volume 15
Issue 1
PUBLISHED
Fall 2008
Abstract
This article examines the recent market for terrorism insurance, detailing the history and goals of the United States Terrorism Risk Insurance Act (TRIA) in all its iterations. It discusses reinsurance, coverage, reimbursement, and liability within the framework of the Act, as well as the benefits and consequences of government-supported terrorism insurance. The article reviews market reactions to the September 11, 2001 attacks to illustrate the challenges of imperfect capital markets. It also explores the future of Chemical, Nuclear, Biological, and Radiological (CNBR) terrorism and considers its potential impact on insurance programs and markets.