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Compromise on terrorism insurance in the US may be near

December 9, 2014December 6, 2014 Logan B.

Federal negotiators may soon reach a fair compromise on the country’s federal insurance backstop Terrorism insurance in the United States may be in jeopardy. In 2002, the Terrorism Risk Insurance Act was passed, creating a federal backstop for insurance claims generated by acts of terrorism in the country. The legislation was meant to provide a transparent system, which allowed insured losses to be shared by both the public and private sectors. The federal backstop has been in contention for some time, as lawmakers have become unconvinced that it is still…

Lawmakers may extend federal terrorism insurance initiative

September 23, 2014September 20, 2014 Marc

U.S. lawmakers are expected to extend the Terrorism Risk Insurance Act Federal lawmakers in the U.S. claim that the country’s terrorism insurance backstop initiative will be renewed. The Terrorism Risk Insurance Act was enacted in 2002, created in the wake of the 9/11 attacks in the U.S. The initiative is meant to provide insurance companies with a financial backstop for claims that are related to acts of terrorism. The law was also meant to create a transparent system through which information concerning compensation for insured losses was shared with the…

Terrorism insurance act may receive an extension in the US

June 10, 2014June 10, 2014 Marc

Senate panel unanimously approves extension of Terrorism Risk Insurance Act A U.S. Senate panel has approved the extension of the federal terrorism insurance initiative. The Terrorism Risk Insurance Act, which was signed into law in 2002, created a backstop for insurance claims relating to acts of terrorism. This initiative is designed to mitigate the risks associated with terrorism occurring within the United States and provides coverage for businesses and any entity that is deemed eligible. A select few insurance companies are allowed to participate in the initiative by providing products…

Terrorism insurance policies sought by Pakistani corporations

May 2, 2014April 30, 2014 H. Cutner

Some strategic moves have been made within the country in order to help to mitigate the terror risk. The chief regulator in Pakistan has been trying to encourage the Pakistan Reinsurance Company Ltd. to write terrorism insurance policies for businesses within the country, in order to protect them against the damage and the liabilities from that kind of attack. So far, the reinsurer has expressed no discernible interest in providing that type of coverage. That firm has managed to completely sidestep the efforts of the chief regulator that would have…

Terrorism insurance program overdependence not recommended by A.M. Best

October 15, 2013January 7, 2014 Julie Campbell

The rating agency has said that this tendency could lead to a considerable problem in the United States. A.M. Best, the large rating agency, has provided insurers with a bold recommendation, which is not to build an overreliance on whether or not there is a reauthorization of the terrorism insurance program in the United States. The future of that program remains up in the air and A.M. Best feels that it is wiser not to completely rely on it. The agency feels that insurers should not count on the Terrorism…