Insuring against terrorism
Subtitle: the policy challenge
By: Kent Smetters.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11038; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11038.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Terrorism insurance -- Government policy -- United States.
Description: "Terrorist attacks worldwide during the past several years have spurned an interest in understanding not only how governments can mitigate terrorism risk but also how governments might help finance future losses.  This interest was buttressed by the seemingly failure of the private insurance market to provide coverage for terrorism losses after the attack on September 11, 2001.  This paper surveys the evidence of the supposed private market failures after 9/11 and the arguments for government provision of terrorism insurance.  The paper argues that mostly unfettered insurance and capital markets are capable of insuring large terrorism losses.  If there is any "failure," it rests with government tax, accounting, and regulatory policies that have made it costly for insurers to hold surplus capital.  Government policy has also hindered the implementation of instruments that could securitize the underlying risks.  Correcting these policies would likely enable private insurers to cover both terrorism and war risks"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 2/8/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.