Despite a changing and uncertain marketplace, U.S. terrorism insurance take-up rates continued to climb in 2009 as companies of all sizes and across all industries continued to purchase terrorism coverage, according to a recent Marsh survey.

"Terrorism risk remains a critical concern for global companies," said Ben Tucker, a senior vice president in Marsh's Property Practice and a lead author of the report.  "Recent attempted attacks are a reminder of the importance of securing adequate financial protection against the possible catastrophic impact of terrorist events."

Capacity in the stand-alone terrorism insurance market, which has served as an important alternative or supplement to coverage made available through the Terrorism Risk Insurance Act (TRIA), has grown considerably in recent years, to a theoretical maximum of $3.76 billion.  Primary purchasers in 2009 included hospitality companies, large real estate firms, and financial institutions.

"There is a real potential for an economic downturn should terrorism insurance not be readily available," Tucker added. "The insurance industry should fully explore all possible options to maintain a viable market, regardless of the level of federal participation beyond 2014."

TRIA was originally enacted in December 2002 as a response to the attacks of September 11, 2001.  The program has been extended twice and is now set to expire December 31, 2014.