A World Without TRIA: Incalculable Risk

The Terrorism Risk Insurance Act (TRIA) and its successors have been an important support to efforts to supply terrorism insurance through the private market. Since the program was enacted, the percentage of companies purchasing terrorism insurance has risen to 80 percent, and the price of coverage has fallen more than 80 percent.

The program expires at the end of 2020, but insurers are already grappling with the possibility of a world without TRIA. This white paper compares the current insurance climate with the two periods post 9/11 when there was no federal backstop and concludes that while the private market for terrorism insurance has grown, there are doubts whether the industry can write terrorism insurance without the backstop.