Terrorism Reinsurance Bill Passes Senate with Carper Support
WASHINGTON, DC – In passing Terrorism Reinsurance legislation today, the Senate acknowledged the nation’s vulnerability to catastrophic financial loss due to terrorist acts. The attacks on the World Trade Center resulted in up to $50 billion in payouts from the insurance industry and caused some insurers to question their ability to offer terrorism insurance. “The threat of catastrophic financial loss because of terrorist attacks has a been a roadblock to economic recovery. This bill removes some of those barriers,” Carper said. “The threat of terrorist attack is real. Businesses need insurance to help limit their loss, but no insurance company alone can carry the costs of a serious attack.” The Senate bill provides a limited federal backstop for losses due to terrorist acts, which allows the marketplace to adapt to this new risk.