Report Confirms Terrorism Risk Insurance Act’s Effectiveness

Nov. 1, 2005

Study urges Congress to extend TRIA

The Terrorism Risk Insurance Act (TRIA) is set to expire in December, and a study by the RAND Corp. is among the many documents urging Congress to grant an extension. A report issued on Oct. 25, 2005, with findings from the organization’s study, conveyed the effectiveness of TRIA in sharing the financial risk that businesses face from terrorism. Additionally, the report notes that less than half of businesses have purchased terrorism insurance and urges the federal government to encourage them to do so.

According to the RAND Corp.’s news release, “the study says that terrorism insurance provided under TRIA would not require federal subsidies unless there is a very large terrorist attack on the scale of Sept. 11, 2001, terrorist strike on the World Trade Center, or a series of large terrorist attacks within a year. This is because federal subsidies to insurance companies are only triggered if TRIA-covered insured losses exceed $15 billion.”

Most significant is the study’s prediction of the pattern of payments for insured losses that occur under TRIA in the event of three kinds of terrorist attacks (a hijacked aircraft hitting a major office building, anthrax being released inside a major office building, and an outdoor anthrax release in an urban area). In each of these situations, TRIA-covered financial losses would not be significant enough to result in federal subsidies to insurers.

The report recommends a few changes to TRIA, including recommending businesses purchase terrorism insurance as part of commercial insurance policies.

To learn more about the RAND Corp. report, visit ( or to find out about efforts to extend TRIA, visit the Coalition to Insurance Against Terrorism website (

Voice your opinion!

To join the conversation, and become an exclusive member of Buildings, create an account today!

Sponsored Recommendations

Building Better Schools

Download this digital resource to better understand the challenges and opportunities in designing and operating educational facilities for safety, sustainability, and performance...

Tips to Keep Facility Management on Track

How do you plan to fill the knowledge gap as seasoned facility managers retire or leave for new opportunities? Learn about the latest strategies including FM tech innovations ...

The Beauty & Benefits of Biophilic Design in the Built Environment

Biophilic design is a hot trend in design, but what is it and how can building professionals incorporate these strategies for the benefits of occupants? This eHandbook offers ...

The Benefits of Migrating from Analog to DMR Two-Way Radios

Are you still using analog two-way radios? Download this white paper and discover the simple and cost-effective migration path to digital DMR radios that deliver improved audio...