NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Federal Terrorism Risk Insurance

Jeffrey R. Brown, Randall S. Kroszner, Brian H. Jenn

NBER Working Paper No. 9271
Issued in October 2002
NBER Program(s):   PE

The terrorist attacks of September 11, 2001 represented a loss for commercial property & casualty insurers that was both unprecedented and unanticipated. After sustaining this record capital loss, the availability of adequate private insurance coverage against future terrorist attacks came into question. Concern over the potential adverse consequences of the lack of availability of insurance against terrorist incidents led to calls for federal intervention in insurance markets. This paper discusses the economic rationale for and against federal intervention in the market, and concludes that the benefits from establishing a temporary transition program, during which the private sector can build capacity and adapt to a dramatically changed environment for terrorism risk, may provide benefits to the economy that exceed the direct and indirect costs.

download in pdf format
   (314 K)

email paper

This paper is available as PDF (314 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9271

Published: Brown, Jeffrey R., Randall S. Kroszner and Brian H. Jenn. "Federal Terrorism Risk Insurance," National Tax Journal, 2002, v55(3,Sep), 647-657. citation courtesy of

Users who downloaded this paper also downloaded these:
Kunreuther and Michel-Kerjan w10870 Policy Watch: Challenges for Terrorism Risk Insurance in the United States
Brown, Cummins, Lewis, and Wei w10388 An Empirical Analysis of the Economic Impact of Federal Terrorism Reinsurance
Smetters w11038 Insuring Against Terrorism: The Policy Challenge
Kunreuther and Michel-Kerjan w13359 Evaluating The Effectiveness of Terrorism Risk Financing Solutions
Kunreuther, Michel-Kerjan, and Porter w10179 Assessing, Managing, and Financing Extreme Events: Dealing with Terrorism
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us