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1 1 (April 22, 2022)

handle is hein.crs/govefpq0001 and id is 1 raw text is: Congressional *.Research Service Insurance, Cyberattacks, and War in Ukraine April 22, 2022 The potential for large, correlated losses has long made insurers wary of offering coverage for war damage. The first exclusions in insurance contracts for marine war risks appeared in the late 1800s. With the relative absence of wars fought on U.S. territory, insurance against war risks has primarily been a concern for the transportation industry, with aviation being added to marine travel over the 20 century. The U.S. government has stepped in at various points and in various forms to ensure the availability of insurance against war risks from the beginnings of World War I through the aftermath of the September 11, 2001 terrorist attacks. (The 9/11 terrorist attacks also prompted a federal insurance program against terrorism risk.) While federal provision of war risk insurance is still authorized for sea and air vessels, it is narrower than it has been in the past. The risk of cyberattacks in the 21St century, particularly in regard to Russia's war in Ukraine, has brought the possibility of damages directly due to wars around the globe closer to home. Private insurance against such damage, however, may become more and more costly and difficult to obtain. Federal War Risk Insurance from WWI-onward The 1914 War Risk Insurance Act (P.L. 63-193) provided coverage through the Department of the Treasury for U.S. vessels unable to secure commercial insurance through World War I. Federal war risk insurance was again put into place following the outbreak of World War II and authority was made permanent for maritime transportation in 1950 (P.L. 81-763; currently codified at 46 U.S.C. @@53901- 53911). This insurance has been focused on private ships providing direct support for Department of Defense (DOD) operations on a nonpremium basis-i.e., private ships do not pay premiums for this coverage. The Department of Transportation's (DOT) Maritime Administration (MARAD) operates the insurance program and pays initial claims. Following the payments, DOT is reimbursed by DOD since the ships are supporting DOD. MARAD also has authority to provide premium insurance-in which the private ships pay premiums for broader federal coverage-but this authority has been used less frequently. From the Korean War onward, aircraft coverage became increasingly important as a growing amount of military support was provided through the air and the amount of civilian air traffic increased. The increased use of aircraft prompted the 1951 creation of federal war risk insurance for aircraft (P.L. 82-47; currently codified at 49 U.S.C §44301-44310). This insurance under DOT's Federal Aviation Administration (FAA) is somewhat similar to the MARAD insurance. It is, however, both broader in scope (with the authority to insure against any risks as opposed to primarily war risks) but more limited Congressional Research Service https://crsreports.congress.gov IN11914 CRS INSIGHT Prepared for Members and Committees of Congress

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