American Politics and Insurance

Many Americans have many more complaintsthe act is designed arrange a provisional program
with the American government and politics, andthat makes sure both citizens and insurance
how ill-prepared the government was for helpingcompanies are prepared - as prepared as can be
American citizens before, during, and after- in the event of a terrorism attack. TRIA does
Hurricane Katrina struck is only one example.this by guaranteeing that the federal government
However, it is apparent that the Americanwill share the costs of losses due to terrorism
government and the politics that surround it areattacks with insurance companies. This helps
not just sitting around waiting for the nextensure that insurance companies will not, for lack
disaster to strike - they have been makingof better terms, run out of money. It also helps
preparations, and not just for natural disastersensure that American citizens provided with the
such as hurricanes.help they needs, as well as be compensated for
Natural disasters are not the only emergencies intheir losses.
which organizations have been founded to helpInsurance companies were not adequately
citizens when insurance policies are nonexistent, orprepared for the financial losses that resulted
not enough; organizations such as the Federalfrom the September 11, 2001 terrorist attacks,
Emergency Management Agency, better knownand had to rely heavily on reinsurers, companies
as FEMA, have stepped in and helped duringthat make available insurance to insurance
troubled times. However, past terrorist attacks,companies, to help pay the cost of damages.
and present risks of terrorist attacks, haveNow that TRIA is in effect, insurance companies
prompted the federal government to get involvedare at less risk for being inadequately funded. Plus,
and pass the Terrorism Risk Insurance Act, alsothe time it takes to underwrite an insurance policy
known as TRIA.is reduced since the losses have been reduced.
TRIA may not be an organization like FEMA, but