Accession Number:

ADA399951

Title:

TERRORISM INSURANCE: Rising Uninsured Exposure to Attacks Heightens Potential Economic Vulnerabilities

Descriptive Note:

Congressional testimony

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC

Personal Author(s):

Report Date:

2002-02-27

Pagination or Media Count:

22.0

Abstract:

The tragic events of September 11, 2001 brought to light the huge potential exposures insurance companies could face in the event of another terrorist attack. Faced with continued uncertainties about the frequency and magnitude of future attacks, at the same time government and military leaders are warning of new attacks to come, both insurers and reinsurers have determined that terrorism is not an insurable risk at this time. As a result, in the closing months of last year insurers began announcing that they could not afford to continue providing coverage for potential terrorism losses. The effects of this trend have yet to be fully realized, but there is some indication that it has begun to cause difficulties for some firms in certain economic sectors.

Subject Categories:

  • Economics and Cost Analysis
  • Civil Defense

Distribution Statement:

APPROVED FOR PUBLIC RELEASE