United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2002-02-27 monographic deposited born digital 20 p. GA 1.13:GAO-02-472T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-472T P0b002ee18039f108 f:d02472t DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-02-472T machine generated eng fdlp REPORT GAOREPORTS-GAO-02-472T GAO-02-472T Economic analysis Economic stabilization Insurance Insurance companies Terrorism Testimony A02814 In the closing months of last year insurers stated that they could not afford to continue providing coverage for potential terrorism losses. Considerable debate has taken place on what the federal government can do to keep commercial insurance companies involved in providing terrorism insurance, even without the protection that they normally receive from reinsurance. Because insurance companies believe that neither the frequency nor the magnitude of future terrorist losses can be estimated, they are withdrawing themselves from the market. Insurance for losses from terrorism is disappearing, particularly for large businesses and those perceived to be at some risk. This withdrawal is happening fastest among reinsurers. Because the insurers' withdrawal has been gradual, the extent of the potential economic consequences is still unclear. What is clear is that in the absence of terrorism insurance, terrorist attacks would dramatically increase direct losses to businesses, employees, lenders, and other noninsurance entities. Furthermore, should the government decide to intervene after a future attack it, would do so without readily available claims-processing and payment mechanisms that exist in the insurance industry. Even in the absence of an actual terrorist event, there are indications that some sectors of the economy are beginning to experience difficulties because some properties and businesses are unable to find sufficient terrorism coverage at any price. If allowed to go unchecked, these difficulties are likely to increase as more insurance contracts come up for renewal over the next year. The resulting economic drag could slow economic recovery and growth. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-472T/html/GAOREPORTS-GAO-02-472T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-472T/pdf/GAOREPORTS-GAO-02-472T.pdf GAO-02-472T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-472T Testimony GAO-02-472T; Terrorism Insurance: Rising Uninsured Exposure to Attacks Heightens Potential Economic Vulnerabilities; Economic analysis Economic stabilization Insurance Insurance companies Terrorism