American Politics and Insurance

Many Americans have many more complaints with the U.S. government and politics, and how badly the government was prepared to help American citizens before, during and after Hurricane Katrina struck is only one example. However, it is clear that the American government and politics that surround it are not just sitting waiting for the next disaster to strike - have been making preparations, and not just for natural disasters such as hurricanes.

Natural disasters are not just the emergencies in which organizations were founded to help people when insurance policies are non-existent, or not enough, organizations like the Federal Emergency Management Agency, better known as FEMA, came in and helped in difficult times. However, past terrorist attacks, and a risk of terrorist attacks have pushed the federal government to get involved and pass the Terrorism Risk Insurance Act, also known as TRIA.

TRIA may not be an organization like FEMA, but the act is intended to organize a provisional program that verifies both citizens and insurance companies are prepared - as prepared as you can - in case of a terrorist attack. TRIA does this by ensuring that the federal government will share the costs of losses due to terrorist attacks with the insurance companies. This helps ensure that insurance will not be for lack of a better word, short of money. It also helps ensure that American citizens with the assistance of their needs, as well as being compensated for their losses.

Insurance companies were not adequately prepared for the financial losses that resulted from the September 11, 2001 terrorist attacks, and had to rely heavily on reinsurance companies, insurance companies that are available to insurance companies, to help pay the cost of damage. Now that TRIA is in effect, insurance companies are at lower risk of being adequately funded. Moreover, the time required for an insurance policy is reduced since the losses were reduced.