Abstract:
Terrorist attacks are a terrifying reality for countries all over the world. They can take the lives of innocent people, cause millions of dollars in property damage, and put a damper on the economy. Fortunately, many countries have developed terrorism insurance programs to cover property damage from these attacks and protect the economy from the harmful effects of these losses. In the United States, terrorism insurance comes in the form of the Terrorism Risk Insurance Act of 2002 and its extensions occurring in 2005, 2007, and 2015. In this paper, I give an overview of each of these acts, briefly acknowledge the similarities and differences among terrorism insurance programs around the world, and then examine the idea that the United States will always need the Terrorism Risk Insurance Program to protect the insurance industry and the economy.
