The U.S. Department of the Treasury’s Federal Insurance Office (FIO) today released a report titled “Report on the Overall Effectiveness of the Terrorism Risk Insurance Program.” The Report is called for by the Terrorism Risk Insurance Program Reauthorization Act of 2015, which was signed into law on January 12, 2015.
The Report analyzes data that was collected this year by Treasury concerning the participation of insurers in the Terrorism Risk Insurance Program (TRIP). The Report concludes that TRIP, which provides a federal backstop for certain U.S. property and casualty insurance losses resulting from a certified act of terrorism, is an important mechanism in ensuring that terrorism risk insurance remains available and generally affordable in the United States.
FIO, which was established within Treasury by the Dodd-Frank Wall Street Reform and Consumer Protection Act, monitors all aspects of the insurance sector, and assists the Secretary in administering TRIP.