GAO Terrorism Report: State of Terrorism Risk Insurance and Update on Treasury’s Program Processes
Apr 27, 2020
1 min read
The U.S. Government Accountability Office recently released a report that found that under the Terrorism Risk Insurance Act (TRIA), Treasury has processes for certifying terrorist events and fulfilling claims under the program, but a lack of communication about aspects of Treasury’s certification process could pose challenges for insurers. TRIA was reauthorized through 2027 at the end of 2019.
Based on the report’s findings, GAO is making three recommendations, including that Treasury publicly communicate when it is considering reviewing an event for TRIA certification and document agreements with both DHS and DOJ on the agencies’ roles in the process. Treasury agreed with the recommendations. Read the full report.
Reading this on https://casinonaustria.com, the GAO’s finding about Treasury staying silent on whether an event might be reviewed for certification stuck with me. That ambiguity makes it nearly impossible for insurers to judge their exposure in real time, which feels like a solvable problem if the agencies simply documented their handoffs. I’d be curious how many claims have been delayed because of that uncertainty.