Insurance Information Institute Calls For Terrorism Insurance Programme

by Stewart Douglas

Story link: Insurance Information Institute Calls For Terrorism Insurance Programme

The Insurance Information Institute has today suggested that a long-term insurance plan against future acts of terrorism is essential in order to ensure economic stability and health.

The news comes just two days after the sixth anniversary of the September 11th attacks of 2001, which saw massive destruction of life, as well as destroying the World Trade Centre and sending fear and uncertainty into world economic markets.

The Institute said that the threat of future terrorist attacks still posed significant risk to the US economy, and until some form of wide-ranging insurance programme is put in place, this level of uncertainty will continue to bear out on world stock markets.

After the attacks of September 11, markets across the world were sent spiralling, with no previous precedent or rulebook for insurers and businesses alike. As a result, the global economy was thrust into widespread uncertainty and confusion, leading to a worldwide recession and downturn in business investment.

With claims after September 11 totalling $31.6 billion (about £16 billion), the Insurance Information Institute are calling for a similar insurance measure to be put in place for future events, tracking the rate of inflation from the level of payouts in 2001.

Analysts have suggested that the global economy would benefit from more available terrorism risk insurance, bringing more certainty to markets in the event of any future crash as a result of a major terrorist attack.

With the Terrorism Risk Insurance Revision and Extension Act winning support in the US House of Representatives, the likelihood of more extensive protection measures is increasing.

The bill will be presented to the Senate in the near future before it can be passed as law. Should it pass, it will allow businesses in the US to take advantage of insurance policies against resultant damage from terrorist attacks in future.