Claims News Service, Dec. 5, 9:56 a.m. EST — The Terrorism RiskInsurance Act subgroup of the American Academy of Actuaries, anonprofit, professional organization that represents actuaries inthe U.S., has issued an analysis that supports the extension ofTRIA. The act currently is set to expire in less than a month.

The “magnitude of potential insurance claims due to terroristevents makes permanent federal legislation necessary in order tomake terrorism coverage widely and readily available,” the groupconcluded. The subgroup based its conclusion on its analysis of thepotential impact of terrorist attacks and “how an insurer may reactto a sudden change in its perceived exposure to catastrophes.”

The results of a major terrorist attack could be catastrophicand could overwhelm the insurance industry, the group asserts.“Terrorists with access to nuclear, biological, chemical, andradiological weapons of mass destruction have the potential tocause single-event catastrophic insured losses many times the sizeof the total insured losses from Sept. 11, 2001. Modelers nowestimate that terrorists with such weapons could cause insuredlosses ranging up to about $700 billion, depending on weapon typeand location.”

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.