03753cam a2200481 i 4500 rnd000000000111660 RAND 20200811100831.0 070920s2007 caua 000 0 eng d 2007039017 0833042351 0833044338 (electronic bk.) 9780833042354 (pbk. : alk. paper) 9780833044334 (electronic bk.) RAND/MG-679-CTRMP (Sirsi) lc514272 CstmoR CstmoR n-us--- HG8535 .F43 2007 The federal role in terrorism insurance : evaluating alternatives in an uncertain world / Lloyd Dixon ... [et al.]. Santa Monica, CA : RAND Corp., 2007. xxvi, 121 pages : illustrations 28 cm. text txt rdacontent computer c rdamedia unmediated n rdamedia online resource cr rdacarrier volume nc rdacarrier "RAND Center for Terrorism Risk Management and Policy." Includes bibliographical references (p. 117-121). Introduction -- Analytic Methods -- Consequences of Allowing TRIA to Expire -- Consequences of Requiring Insurers to Offer Terrorism Coverage for Conventional and NBCR Attacks -- Conclusion -- Appendix A: RMS's Probabilistic Terrorism Model -- Appendix B: Policyholder Take-Up of Terrorism Insurance -- Appendix C: Loss-Distribution Model -- Appendix D: Identifying Key Factors Driving Trade-Offs Between Interventions -- Appendix E: Calculating Expected Losses with Multiple Probability Distributions. Concerned that the unavailability of terrorism insurance would impede economic recovery and hinder growth after the 9/11 attacks, Congress passed the Terrorism Risk Insurance Act of 2002 (TRIA). TRIA will sunset at the end of 2007 unless Congress takes further action. This book examines the implications of allowing TRIA to expire and of enhancements aimed at improving the availability and affordability of insurance for nuclear, biological, chemical, and radiological (NBCR) attacks. The analysis takes a systematic approach to addressing the deep uncertainties that underlie the market for terrorism insurance and is the first study of TRIA to consider not just taxpayer payments through the program but also the cost of government compensation and assistance following a terrorist attack when analyzing the program's effect on government spending. The authors conclude that taxpayer cost is lower with TRIA than without TRIA across a broad range of assumptions about attack frequency and the proportion of uninsured losses that are compensated postattack. The analysis also cautions policymakers to be careful when modifying the program to better address NBCR attacks: Simply expanding the program to require insurers to offer NBCR coverage may not achieve the desired outcomes. The authors identify program changes that will produce positive results for both NBCR and conventional attacks that are robust to key underlying uncertainties. Also available on the internet via WWW in PDF format. United States. Terrorism Risk Insurance Act of 2002. Risk (Insurance) United States. Terrorism insurance Government policy United States. Terrorism Economic aspects United States. Dixon, Lloyd S. author. Lempert, Robert J. author. LaTourrette, Tom, 1963- author. Reville, Robert T. author. RAND Center for Terrorism Risk Management and Policy. Rand Corporation. Online Access http://www.rand.org/pubs/monographs/MG679/ 598102 598102