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  3. (1)Of all the catastrophes mat could befall America in coming years, a big t

(1)Of all the catastrophes mat could befall America in coming years, a big t

游客2023-11-27  35
问题     (1)Of all the catastrophes mat could befall America in coming years, a big terrorist attack, perhaps even bigger than those on September 11th 2001, may be more likely than others. Who would pay for the millions in property damage, business losses and other claims from such an attack?
    (2)This is the question with which America’s Congress is currently wrestling. The Terrorism Risk Insurance Act(TRIA)was passed as a temporary measure after September 11th to provide a government back-stop for the insurance industry in me event of a catastrophic attack. It now says government can step in when insured losses from a terrorist event top $5m. TRIA has helped to stabilize the market, and enabled insurers to continue offering terrorism-risk cover even after swallowing the big losses imposed by September 11th. But unless Congress acts fast, TRIA will expire at the end of the year. One likely result is the loss of terrorism-risk cover for thousands of firms and property owners. This, in turn, could disrupt businesses and make some commercial activity impossible. With modifications, TRIA should be extended.
    (3)The government has been opposed to extension. It has always seen TRIA as a short-term measure, and has argued that the private sector should assume sole responsibility for terrorism insurance. This is the right goal. A purely private solution would be best, lifting any future burden from the taxpayer and relying on the industry to price and spread risks more accurately than any government can do. But relying entirely on the private sector immediately does not look feasible. With TRIA’s expiration looming, insurers and reinsurers have not rushed to write new contracts for next year offering to fall gaps in terrorism cover.
    (4)Why the hesitation? Unlike other risks, the threat of terrorism cannot be forecast in time or scope, making a mockery of insurers’ underwriting models. A big chemical, biological or nuclear attack is a prospect few can price, or afford to cover. Insurers are already being threatened with downgrades by rating agencies for the terrorism cover they have sold.
    (5)One reason is that insurance, far from being a free market, is already one of the most heavily regulated of industries. Operating in a highly distorted marketplace, with 50 state regulators, the insurance industry seems to be having trouble pricing the largest of terrorism risks in a way that is credible and can still offer insurers a profit. Letting TRIA expire, and abruptly withdrawing the government role in insuring the largest losses, would just exacerbate this problem.
    (6)Any renewal of TRIA should, once again, be limited to two years, say. Its extension must also shift more of the burden, and the business, to the private sector. If an extension is agreed and TRIA’s threshold for government intervention is raised substantially, work should begin now to find better longer-term solutions. One place to look is abroad, where governments have dealt with terrorism risk for years. In Britain, for instance, insurers have created a pool of capital that is backed by the government and, over time, shifts a greater share of risk on to thee private sector. Other options to consider include tax changes that reduce the cost of holding capital by insurers and reinsurers, and facilitating the use of catastrophe bonds.
    (7)With fewer regulatory distortions of insurance markets, a solely private solution maybe attainable in the long run. In the current environment, though, the government that regularly warns of terrorist threats must still have a role to play in a solution that safeguards America’s financial security. It would be better to plan ahead than wait for a rushed, Katrina-style bail-out after a big attack. Amid all the uncertainties, one thing seems clear; any such bail-out would be more costly and lead to also greater market distortions without an extension of the Terrorism Risk Insurance Act today. [br] In terrorism insurance, the private sector _____.
选项 A、makes efficient use of the tax revenue in subsidizing insurance loss
B、has strength in sharing the risk with other stakeholders in society
C、is more economically efficient in offering short-term insurance
D、relies on the government to provide insurance for their loss
答案 B
解析 第3段第4句指出，完全依靠私有部门可以最好地减轻纳税人未来的负担，通过行业本身更准确地设定价格并分担风险，可见the private sector是可以发挥重要作用的，故选B。A与“可以最好地减轻纳税人未来的负担”意思相悖，故错误；根据最后一段首句可知，只依靠私有公司的办法在长期内才有效，因此C错误；政府只是提供后备支持，并非为损伤买单，因此D说法不对。
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