The Terrorism Risk Insurance Act (TRIA) bears strong resemblance to the program in jeopardy. The current administration is not in favor of TRIA because “it feels such reinsurance exposure should be borne by the private sector.”
After 9/11 airlines complained to congress that terrorism risk coverage was withdrawn by the private sector. In light of these complaints Congress added terrorism risk for domestic carriers to an already existing War risk Insurance Program.
According to a broker “without this government program, the airlines would be in a world of hurt.” By the end of the month a report is due out that is “gauging how receptive the Bush administration is to renewal of TRIA past its 2007 sunset.”
In the meantime a specialist insurer, Hiscox USA, has announced it will begin offering terrorism cover to the US middle-market for risks below TRIA’s $50 million loss trigger and also includes full terror liability coverage for employers.
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