The U.S. Congress enacted the Terrorism Risk Insurance Act (TRIA) in November 2002, providing a vital backstop for terrorism risk insurance. Since that initial enactment in 2002, the terrorism risk insurance program has been revised and extended twice. More than a decade later, 9/11 remains the worst U.S. terrorist act in terms of fatalities and insured property losses.
While terrorism risk is changing, it continues to be an evolving and ongoing threat for the foreseeable future. Failure to focus on and prepare for this threat will come at an enormous cost to the millions of individuals and businesses who rely on insurance contracts to offset the overall economic impact of a terrorist attack.
As TRIA has evolved, private insurers and businesses have assumed a greater share of their terrorism risk. The current program – The Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA) – is slated to expire at the end of 2014, which could significantly undermine the terrorism risk insurance market.
We support renewal of TRIPRA, and look forward to working with clients and public officials to structure a terrorism risk insurance program that makes sense for the long-term health of our economy.