Terrorism Insurance ‘Underpriced’ in United States - Council on Foreign Relations

Erwann Michel-Kerjan, an expert on terrorism insurance and the director of the Risk Management and Decision Processes Center at the Wharton School of Business, says that roughly 40 percent of major U.S. businesses remain entirely uninsured for the possibility of a terrorist attack, despite the devastating threat an attack could pose for their operations. He also argues that government insurance subsidies, combined with the lack of an attack for seven years, have led to a situation in which terror insurance in the United States may now be underpriced.