Property/casualty insurers would be likely to reduce their underwriting in areas facing the highest terrorism risk if the federal government allows the terrorism-insurance backstop to lapse, according to a report from Guy Carpenter. "Many policyholders would be left to self-insure the entire risk or portions of the risk, meaning any future terrorist attacks could have a negative impact on U.S. economic activity" and hurt the country's competitiveness globally, the report says.

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