Following the September 11th attacks, many insurers stopped providing terrorism risk coverage after suffering what was then the most costly disaster in the history of insurance. In the wake of the financial disruption, the government enacted the Terrorism Risk Insurance Act; a public-private cost-sharing arrangement that requires private insurance companies to provide terrorism risk coverage in exchange for federal financial backing. Without Congressional intervention, TRIA is currently scheduled to sunset on December 31, 2014.
On Tuesday, November 19th, National Journal hosted a policy summit that will convened Members of Congress, academics, financial and insurance experts for a robust discussion concerning TRIA's future. The discussion explored questions such as: Is TRIA a common-sense solution that benefits insurers and policyholders alike, or do taxpayers bear the burden of unnecessary insurance bailouts? What other costly disasters might be on the horizon, and should TRIA be reauthorized at the end of next year?