Tax Deductions for Catastrophic Risk Insurance Reserves: Explanation and Economic Analysis (CRS Report for Congress)
A full-text PDF of the latest version is currently unavailable.
| Release Date |
Revised Feb. 6, 2009 |
| Report Number |
RL33060 |
| Report Type |
Report |
| Authors |
Rawle O. King, Analyst in Financial Economics and Risk Assessment |
| Source Agency |
Congressional Research Service |
| Older Revisions |
-
Premium Revised June 5, 2008 (18 pages, $24.95)
add
-
Premium Sept. 2, 2005 (17 pages, $24.95)
add
|
Summary:
In the wake of Hurricane Katrina that struck several states along the Gulf of Mexico on August 29, 2005, the attention of policymakers in Congress and elsewhere has turned to the subject of insurance for large catastrophic risks, including natural disasters such as hurricanes and earthquakes. The generally perceived increase in the incidence of major catastrophes and their increasingly costly nature has prompted some analysts to question whether the economy's market for catastrophe insurance is sufficient to meet the burdens of major catastrophes: does the market provide a sufficient amount of insurance against major catastrophes, or is there a shortage? And, to the extent that catastrophe insurance exists, are the insuring firms sufficiently capitalized so that widespread insolvencies would not occur? Some have suggested that federal action is advisable to make sure that insurance industry resources are adequate to ensure the availability and affordability of disaster insurance and payment of claims when disasters occur.
