In 2002, the U.S. government enacted the Terrorism Risk Insurance Act, creating a federal backup for insurers in the wake of the Sept. 11, 2001 attacks. The act expires at year's end. Is it still a valuable instrument -- or has it degenerated into "corporate welfare"?
Joseph Annotti says terror insurance is an efficient tool "that works" -- and is a necessity.
The senior vice president at Property Casualty Insurers Association of America told "Power Lunch" that the act "created a viable private market" for terror insurance -- and he declared that human acts of destruction constitute an "uninsurable risk, without the federal government." He claimed that in the wake of "9-11," but before terror insurance was enacted, the market "went south" and "buildings couldn't be built."
In addition, Annotti said that the act "costs the taxpayer almost nothing."