The Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), commonly known as TRIA, is set to expire on December 31, 2014.
Enacted after the September 11, 2001, terrorist events, TRIA has been reauthorized twice, both times with modifications. If TRIA is not reauthorized, the number of property insurers willing to continue offering terrorism insurance is likely to decrease. According to interviews conducted by Marsh’s property and terrorism experts before the 2005 extension, of 50 commercial property insurers polled, 34 (68%) confirmed they would have excluded terrorism coverage after December 31, 2005, if TRIA was not extended at that date.
With expiration less than two years away, supporters of an extension are gathering information, preparing for the possible outcomes, and asking Congress to take action. This report looks at the Act’s history and uses Marsh benchmarking data to show trends in take-up rates, pricing, and other relevant issues.
Although there is private market capacity for terrorism insurance, it may not be enough to meet the demand in the marketplace should TRIA not be reauthorized.