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for the development of public-private partnerships, as recognized in November 2002 when the Terrorism Risk Insurance Act … provide some features of a more sustainable program for terrorism insurance in the U.S. after December 31, 2005 …This paper discusses new challenges we face with terrorism as a catastrophic risk by focusing on risk assessment, risk …
Persistent link: https://www.econbiz.de/10012468515
the seemingly failure of the private insurance market to provide coverage for terrorism losses after the attack on … government provision of terrorism insurance. The paper argues that mostly unfettered insurance and capital markets are capable of … governments can mitigate terrorism risk but also how governments might help finance future losses. This interest was buttressed by …
Persistent link: https://www.econbiz.de/10012467649
This paper examines the role that insurance has played in dealing with terrorism before and after September 11, 2001 …, by focusing on the distinctive challenges associated with terrorism as a catastrophic risk. The Terrorism Risk Insurance … Act of 2002 (TRIA) was passed by the U.S. Congress in November 2002, establishing a national terrorism insurance program …
Persistent link: https://www.econbiz.de/10012467819
Since the passage of the Terrorism Risk Insurance Act of 2002, corporate terrorism insurance is sold as a separate … and terrorism insurance. Using a unique dataset of insurance policies purchased by large U.S. firms, combined with … findings suggest that both are rather price inelastic and that corporate demand for terrorism insurance is significantly more …
Persistent link: https://www.econbiz.de/10012459129
insurance coverage against future terrorist attacks came into question. Concern over the potential adverse consequences of the … lack of availability of insurance against terrorist incidents led to calls for federal intervention in insurance markets … dramatically changed environment for terrorism risk, may provide benefits to the economy that exceed the direct and indirect costs …
Persistent link: https://www.econbiz.de/10012469438
This paper investigates the rationale for government intervention in the market for terrorism insurance, focusing on … rational terrorists. Government subsidies for terror insurance can discourage self-protection and limit the inefficiencies …
Persistent link: https://www.econbiz.de/10012469494
Over the last twenty years, the consensus view of systemic risk in the financial system that emerged in response to the banking crises of the 1930s and before has lost much of its relevance. This view held that the main systemic problem is runs on solvent banks leading to bank panics. But...
Persistent link: https://www.econbiz.de/10012467237
This paper builds on Froot and Stein (1998) in developing a framework for analyzing the risk allocation, capital budgeting, and capital structure decisions facing insurers and reinsurers. The model incorporates three key features: i) value-maximizing insurers and reinsurers face product-market...
Persistent link: https://www.econbiz.de/10012468510
autarky, but also partial and full insurance can obtain, depending on the relative patience of agents and financial … intermediaries. Insurance can be provided because in an equilibrium contract an up-front payment effectively locks in the agent with …
Persistent link: https://www.econbiz.de/10012468559
does not alter this result. We also show that the informationally constrained optimal insurance contract has a resetting …
Persistent link: https://www.econbiz.de/10012463539