Tag Archives: risk allocation

Terrorism Risk Insurance Program Reauthorized

Via Cryptome. This statute has been reauthorized. Our limited understanding is that it makes the United States government the guarantor of insurance company losses due to terror atttacks over certain threshold amounts. Whether there’s a moral hazard – discouraging insurers and insureds from taking preventive and mitigating measures – we don’t know. We hope to return to this issue shortly. Terrorism Risk Insurance Program Reauthorization.