RIMS members fear consequences of TRIA expiration

The availability of terrorism insurance all but dried up overnight following the September 11, 2001 terrorist attack in the US, which cost insurers $31.6bn.

The US government eventually stepped in, establishing a government terrorism backstop to limit insurers’ liability under the Terrorism Risk Insurance Act (TRIA).

That legislation was extended for two years in December 2005 and then again until 2014 under the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).

hide

In the intervening years, a standalone terrorism market has flourished as US insurers resumed offering cover, albeit with the knowledge that the US government would take on the biggest losses.

With TRIA’s expiration date fast approaching, the debate has turned to if, or to what degree, the government should continue to provide support.

“It’s clear that risk professionals are concerned that TRIA’s expiration will prevent their organisations from attaining the necessary coverage to protect assets and employees from devastation caused by terrorism,” said RIMS Board Director Carolyn Snow. “TRIA is integral to keeping affordable lines of terrorism insurance available to all organisations conducting business in the United States. Without it, not only will individual organisations be more exposed in the event of a terrorist attack, our federal government would also take on the extraordinary burden of supporting its constituents during an often costly rebuilding process.”

Back to top button