TERRORISM


Marsh provides updates on terrorism risk insurance, trends, and capacity through our Marketwatch reports. In addition, Marsh has been monitoring changes to the Terrorism Risk Insurance Act (TRIA) since it was originally signed into law in November 2002 and reinstated several times over.

Terrorism

Despite an ever-changing terrorism risk insurance market, businesses from every industry sector continue to purchase coverage—more than 60 percent of organizations surveyed by Marsh bought coverage in 2009.

Terrorism insurance and associated risk management strategies are dynamic and complex issues, with many interdependent factors contributing to managing the risk. Foreign relations, the effectiveness of homeland defense, and the ambiguous nature of the risk make terrorism losses extremely challenging to predict and quantify. It is difficult for insurers to effectively price and reserve capacity for their otential exposure to catastrophic terrorism losses.

U.S. insurers are backed by the commitment of the United States federal government to provide reinsurance relief to help them manage the ongoing risk of terrorism. In 2007, President Bush signed the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA), extending the program through December 31, 2014. The original legislation — the Terrorism Risk Insurance Act of 2002 (TRIA) — was a direct response to the attacks of September 11, 2001, and part of a concerted effort to keep the American economy strong.

Like the original legislation, the two extensions were intended as short-term solutions. Congress passed TRIPRA in part because the insurance industry had not amassed enough capital to insure catastrophic terrorism losses without a federal backstop.

Since the original legislation in 2002, the standalone terrorism market has grown and evolved and now offers a number of viable program solutions for companies in the United States and abroad to mitigate their terrorism risks.

Marsh Risk Management Research
2014 Terrorism Risk Insurance Report
April 21, 2014  |  Views: 8685 |  Comments: 0 
2014 Terrorism Risk Insurance Report
Uncertainty around renewal of the federal insurance terrorism backstop, set to expire December 31, 2014, has affected the availability and price of insurance.  >>
US Insurance Market Report 2014
February 07, 2014  |  Views: 13439 |  Comments: 0 
US Insurance Market Report 2014
US commercial property insurance prices stabilized for many organizations in 2013 as a significant surplus of capital among insurers and reinsurers kept competition high.  >>

Additional Thought Leadership
US Senate Passes Bill That Would Extend Federal Insurance Backstop
July 18, 2014  |  Views: 7721 |  Comments: 0 
US Senate Passes Bill That Would Extend Federal Insurance Backstop
Legislation extending TRIA now exists in both chambers of US Congress.  >>
Three Key Insights from Advisen’s 2014 Property Insights Conference
June 19, 2014  |  Views: 8211 |  Comments: 0 
Three Key Insights from Advisen’s 2014 Property Insights Conference
TRIA, claims, and innovation emerged as key themes of this year’s conference.  >>
House Financial Services Committee Releases TRIA Extension Bill
June 12, 2014  |  Views: 8454 |  Comments: 0 
House Financial Services Committee Releases TRIA Extension Bill
Legislation includes nuclear, chemical, and radiological acts of terrorism but could be amended in committee.  >>
Senate Committee Approves Terrorism Risk Insurance Program Reauthorization Act of 2014
June 04, 2014  |  Views: 8491 |  Comments: 0 
Senate Committee Approves Terrorism Risk Insurance Program Reauthorization Act of 2014
Measure makes it out of Banking, Housing, and Urban Affairs with strong, bipartisan support.  >>
Terrorism Risk Insurance Act Scheduled to Expire at Year End
March 17, 2014  |  Views: 10413 |  Comments: 0 
Terrorism Risk Insurance Act Scheduled to Expire at Year End
Until the future of TRIA is clarified, captives must continue to comply with the “make-available” and other provisions of TRIA.  >>
Webcast: Workers’ Compensation 2014: Terrorism Insurance and Other Key Legislative Issues (Replay)
January 17, 2014  |  Views: 27446 |  Comments: 0 
Webcast: Workers’ Compensation 2014: Terrorism Insurance and Other Key Legislative Issues (Replay)
Learn what’s on the horizon for workers’ compensation in 2014.  >>
Noncertified Terrorism Insurance: Avoiding Coverage Gaps
November 04, 2013  |  Views: 22537 |  Comments: 0 
Noncertified Terrorism Insurance: Avoiding Coverage Gaps
Noncertified terrorism insurance covers acts costing less than $5 million in aggregate losses; insureds need to be aware of coverage exclusions.  >>
Update on Terrorism Risk Insurance Program Reauthorization
October 25, 2013  |  Views: 27515 |  Comments: 0 
Update on Terrorism Risk Insurance Program Reauthorization
Marsh has taken several steps to advance debate about the future of The Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), the federal terrorism insurance backstop prog...  >>
Loss Control Newsletter – October 2013
October 25, 2013  |  Views: 15477 |  Comments: 0 
Loss Control Newsletter – October 2013
The latest Loss Control Newsletter details recent energy industry losses and explores topics such as terrorism loss estimates and project risk mapping.  >>
Considering Alternatives for Insuring Terrorism Risk
September 19, 2013  |  Views: 28467 |  Comments: 0 
Considering Alternatives for Insuring Terrorism Risk
With the federal insurance backstop scheduled to expire at the end of next year, organizations should begin considering alternatives.  >>
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Bowring Marsh is the specialist international placement broker at Marsh for property, casualty and terrorism insurance.  >>
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April 22, 2014  |  Views: 4995
New Marsh Survey Report Confirms Need for TRIPRA Reauthorization
A new report released today by Marsh confirms that demand for terrorism insurance remains strong and the existence of the Terrorism Risk Insurance Program Reauthorization Act (TRIP...  >>
February 07, 2014  |  Views: 8045
Favorable US Insurance Market Conditions Expected in 2014: Marsh
The ample capacity and competition that helped temper firming of US commercial insurance rates in 2013 is expected to continue into 2014, barring higher than expected catastrophe l...  >>
January 21, 2014  |  Views: 6692
Workers' Compensation Market Continues to Deteriorate as Uncertainty Over TRIPRA Reauthorization Grows: Marsh
Employers with large concentrations of employees will find an increasingly difficult workers’ compensation market in 2014 as insurers have begun underwriting policies that co...  >>
September 19, 2013  |  Views: 6674
Marsh & McLennan Companies Urges Lawmakers to Reauthorize Terrorism Risk Insurance Act during US House of Representatives Hearing
Testimony illustrates demand for terrorism coverage remains strong.  >>
September 04, 2013  |  Views: 5551
Marsh Urges Energy Insurance Market to Rethink Cyber Clauses
Continuing uncertainty surrounding the application of cyber exclusion clauses in policy wordings by insurers is eroding the value of insurance and causing mounting concern among gl...  >>
April 30, 2013  |  Views: 5508
Marsh Report: Demand for Terrorism Coverage Remains Strong
Federal reinsurance program continues to stabilize terrorism insurance market.  >>

Contacts
Duncan Ellis
U.S. Property Practice Leader
New York NY United States
212 345 3183
duncan.c.ellis@marsh.com