Insuring Mobilized Reservists Against Economic Losses

An Overview

by David W. Grissmer, Sheila Nataraj Kirby, Man-bing Sze, David M. Adamson

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Abstract

Reserve personnel played a critical role during Operation Desert Storm. However, a significant proportion of those who were mobilized faced economic losses. These losses resulted from the difference between their civilian and military incomes, loss of civilian benefits, and additional expenses during mobilization. This report summarizes results from an ongoing study of the economic losses of reservists upon mobilization and explores one option for addressing this problem, namely, the feasibility of offering insurance protection against such losses. The results are based on two surveys of reserve personnel.

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