The terrorism landscape has changed significantly since 9/11. There is a visible shift from large-scale attacks to a growing number of lone wolf attacks. Many believe there has not been a major terrorist event in the United States post 9/11, but one should not overlook the near-misses in the recent past which could have caused massive losses such as the 2016 New York-New Jersey bombings.
The unpredictable and catastrophic nature of terrorism led to the emergence and continued reauthorization of the U.S. Terrorism Risk Insurance Program or TRIPRA, a federal backstop for defined acts of terrorism, which facilitated insurers to continue to provide terrorism coverage after 9/11.
Assessing Workers’ Compensation Risk from Terror Attacks in California
Reflecting this changing landscape, RMS conducted a terrorism risk study for the Workers’ Compensation Insurance Rating Bureau of California (WCIRB). The WCIRB is an unincorporated, private, non-profit association comprised of all companies licensed to transact workers’ compensation insurance in California and has over 400 member companies.
This study has received considerable market recognition, following our previous successful engagement to provide California earthquake risk assessment.
The objective of our study was to estimate California’s workers’ compensation losses to be retained by insurers due to terrorist acts, under TRIPRA for calendar year 2019. Please find a link to the study here.