Catastrophic Risk Management
ICJ seeks to improve the complex system of public and private compensation for losses of life and property caused by natural disasters and terrorist attacks.
Disasters such as earthquakes, hurricanes, tsunamis, large-scale industrial accidents, and terrorist attacks kill thousands each year worldwide. In addition to the obvious human toll, disasters can have enormous economic consequences, destroying public and private infrastructure, disrupting government services, harming the environment, and reducing a populations' productivity and confidence.
Compensation for catastrophic losses of life and property comes from insurance companies, the court system, government compensation programs, philanthropic institutions, and business assistance to employees. It is a complex system and the balance of public and private compensation varies by the type of disaster and its magnitude.
This body of work offers analysis of the strengths and weakness of the current system in different contexts. It identifies who receives compensation, how it is allocated, who pays, and what incentives (and disincentives) are created by the system to mitigate risk. The research also describes how changing the balance between private and public sources of compensation would affect outcomes.
Evaluating Alternatives for Renewing TRIA in an Uncertain World — 2008
This research brief summarizes an analysis of terrorism-insurance policy. The current law produces positive outcomes for conventional attacks but does not effectively address risks that nuclear, biological, chemical, or radiological attacks present.
Economically Targeted Terrorism: A Review of the Literature and a Framework for Considering Defensive Approaches — 2007
This report describes the range of economic effects of terrorist activities. The framework developed here captures costs of economic targeting, whether through episodic or campaign terrorism, and explores defensive measures against this threat.
The Federal Role in Terrorism Insurance: Evaluating Alternatives in an Uncertain World — 2007
This book examines the impact of the Terrorism Risk Insurance Act on the market for terrorism insurance and analyzes program enhancements to improve the availability of insurance for nuclear, biological, chemical, and radiological attacks.
Trade-Offs Among Alternative Government Interventions in the Market for Terrorism Insurance: Interim Results — 2007
This briefing informs the debate over extending the Terrorism Risk Insurance Act (TRIA). The results suggest that TRIA performs well on outcomes examined for conventional attacks but not for chemical, biological, radiological, or nuclear ones.
Using Probabilistic Terrorism Risk Modeling For Regulatory Benefit-Cost Analysis: Application to the Western Hemisphere Travel Initiative Implemented in the Land Environment — 2007
This report introduces a framework for using probabilistic terrorism risk modeling in an analysis of the Western Hemisphere Travel Initiative, a proposed regulation specifying documentation requirements for entry to the United States by land.
The Victims of Terrorism: An Assessment of Their Influence and Growing Role in Policy, Legislation, and the Private Sector — 2007
This report documents 9/11 victims' groups -- a powerful force in U.S. counterterrorist policy and legislation -- and compares them to groups formed in response to other terrorist attacks.
Considering the Effects of a Catastrophic Terrorist Attack — 2006
A description of the results from a scenario analysis and strategic gaming revolving around a catastrophic terrorist attack on the Port of Long Beach, including many of the primary analysis results.
Distribution of Losses from Large Terrorist Attacks Under the Terrorism Risk Insurance Act — 2005
The pending expiration of the Terrorism Risk Insurance Act (TRIA) of 2002 is the impetus for this assessment of how TRIA redistributes terrorism losses, helping to inform policymakers on whether to extend, modify, or terminate it.
Terrorist Insurance and the Evolving Terrorism Threat — 2005
How does the Terrorism Risk Insurance Act (TRIA) align with the evolving terrorism threat? Transnational and domestic terrorism trends reveal that TRIA does not provide adequate financial protection, particularly in the face of economically motivated...
Assessing the Effectiveness of the Terrorism Risk Insurance Act — 2004
This study simulates the expected losses from three modes of terrorist attacks and shows how the Terrorism Risk Insurance Act (TRIA) would distribute the resulting losses.
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