US terror laws - Doubts over renewal of TRIA legislation raise concerns over insurance ‘road block’.

RIMS, the North American risk management association, have urged US legislators to renew the TRIA (Terrorism Risk Insurance Act), which is due to expire next year. A Bill currently going through Congress to extend the arrangement for five years is encountering substantial opposition, especially from Republicans in the House of Representatives.

The original TRIA Act was passed in 2002 following the attacks of 9/11 when it became clear that the insurance market required Federal support if it was to continue to offer terrorism cover on acceptable terms.

A report from RIMS says renewing TRIA is important to businesses in the US in protecting them from  the devastating effects of terrorism.   

“The challenge of predicting the extent of damages that could result from terrorism prevents insurers from providing their clients with adequate and affordable insurance.  This uncertainty has forced organizations to rely on TRIA to fulfil those coverage gaps,” said RIMS Board Director Carolyn Snow.

“With no indication from government as to their plans for the future of TRIA, risk professionals and insurance providers will run into major roadblocks when developing suitable risk financing programs, especially during the renewal process.”