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WMD TerrorismScience and Policy Choices$
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Stephen M. Maurer

Print publication date: 2009

Print ISBN-13: 9780262012980

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262012980.001.0001

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Responding to WMD Terrorism Threats: The Role of Insurance Markets

Responding to WMD Terrorism Threats: The Role of Insurance Markets

Chapter:
(p.251) 9 Responding to WMD Terrorism Threats: The Role of Insurance Markets
Source:
WMD Terrorism
Author(s):

Dwight Jaffee

Thomas Russell

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262012980.003.0009

This chapter analyzes the issues arising in the provision of insurance against WMD terrorist attacks and evaluates alternative solutions for the United States. The chapter is organized as follows. Section 9.1 summarizes the basic principles of insurance and the benefits it provides in the context of WMD terrorist attacks. It also surveys the reasons why so few private insurance markets currently operate to provide coverage against catastrophic risks, including WMD terrorist attacks. Section 9.2 describes the range of governmental solutions that have been tried or are currently proposed for insuring terrorism risks. Section 9.3 analyzes the issues and recommends strategies for providing viable WMD terrorism insurance for individuals and firms.

Keywords:   terrorist attack, insurance costs, terrorism insurance, terrorism risk

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