Government seeks information from insurers regarding terrorism insurance program

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Federal government is requesting that insurers submit data concerning the Terrorism Risk Insurance Program The U.S. federal government is requesting information from insurers participating in the Terrorism Risk Insurance Program. The insurance program was established in the wake of the 9/11 terrorist attacks in 2001 and was reauthorized in 2015 through 2020. The program is meant to serve as a financial backstop for insurers, allowing them to effectively mitigate the risks associated with acts of terrorism. While such acts are quite rare in the United States, insurers still face certain…

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Terrorism insurance is becoming common among large businesses

Texas Terrorism Insurance news

Major businesses are now beginning to embrace terrorism insurance more aggressively Terrorism insurance is becoming more common for businesses. Terrorist attacks are becoming more common, which is beginning to cause worry for businesses that could be caught in such events. Now, six in 10 major businesses now have terrorism insurance coverage. Jeremi Suri, chair of Leadership in Global Affairs, notes that businesses see paying for terrorism insurance as an adequate way to hedge risks. While it is still unlikely for most businesses to experience a terrorist attack, being prepared for…

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US House votes to extend terrorism insurance law

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Insurers may benefit from extension of terrorism insurance initiative The U.S. House of Representatives has voted to extend the Terrorism Risk Insurance Act by another six years. The law went into effect in 2002 and has established a federal backstop that provides financial assistance for insurers offering coverage against acts of terrorism. The law has played a major role in ensuring that various industrial and commercial projects have the coverage they need to take form. Over the past year, the law has been the subject of legislative debate, with some…

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Compromise on terrorism insurance in the US may be near

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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…

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

Terrorism Insurance

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…

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