Insuring Against Terrorism: A Plan for Economic Security
The Coalition to Insure Against Terrorism, made up of business insurance policyholders, is urging Congress to reauthorize TRIA.
Insurer Responsibility: If a terrorist attack occurs resulting in at least $100 million in aggregate losses, the insurer will pay claims up to 20% of the insurer’s direct earned premium (of prior year) and 15% of claims above its deductible. As much as $35.5 billion in insured losses may be retained by insurers even before any federal co-pay support.
Policyholders: Commercial policyholders pay the premium for terrorism coverage and retain any individual policy deductibles as applicable. Policyholders bear aggregate losses exceeding $100 billion with no liability for insurers or the federal government.
Federal Role: The federal government will only provide assistance if the act of terrorism results in at least $100 million in aggregate insured losses. Federal assistance is provided only if an insurer has paid out losses exceeding the deductible and will cover only 85% over the deductible. There is a 15% co-share of losses exceeding insurer deductibles.
Taxpayer Protection: For terrorist events that result in aggregate losses up to $27.5 billion, any federal assistance through TRIA must be recouped over time through a surcharge on all commercial policies in covered lines.
October 28, 2013: Terrorism Risk Insurance Is a Jobs Issue
September 16, 2013: CIAT Submits TRIA Comments to President’s Working Group on Financial Markets
August 2, 2013: Fitch Warns of Strong Market Impact if TRIA Isn't Reauthorized
July 18, 2013: Terrorism Insurance Still Needs Federal Backstop
May 23, 2013: Bipartisan Bill Introduced to Extend TRIA for 10 Years
May 1, 2013: Analysis of Terrorism Risk Insurance Program
April 30, 2013: CIAT Update
February 6, 2013: CIAT Endorses Legislation to Reauthorize TRIPRA
Read CIAT Letter in support of Rep. Grimm's proposal to extend TRIA, dated January 25, 2013.
©2006 Coalition to Insure Against Terrorism