With the recent decision of the government to not renew TRIA there have been many discussions as to whether or not this will have an impact on the workers compensation arena. Acrometis’ own President and CEO Jerry Poole who is a Risk Insider was asked about his views. His Risk & Insurance article can be found below.
Backing Out of TRIA Harms Us All
Insuring risk is a societal and economic necessity. The goal of insurance is to spread risk across a large enough pool of people or businesses with similar risk profiles as to make the costs and variability manageable.
No one entity can reserve for or pay for catastrophic events such as the loss of a home or business. So we all pay yearly in the form of premiums that go into a pool to protect those struck by catastrophe.
Risk is measured in two major categories 1) the probability of an event and 2) the impact if an event happens.
The nature of terrorism is that single actors or small groups can greatly impact both categories, i.e. Timothy McVeigh and a truck load of fertilizer. There are many of us and many ways other humans can harm life and property.
If the government won’t protect us from terrorism and it won’t help insure the results of terrorism, then we have an unprotected economy.
Terrorism is also something that tends to hurt people who aren’t traditionally in high risk jobs, but just happen to be in the wrong place at the wrong time.
To read the article in its entirety on Risk & Insurance click here.