The demand for terrorism insurance remains strong and the existence of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) plays a key role in making coverage available and affordable, according to Marsh & McLennan.
The company’s recent 2014 Terrorism Risk Insurance Report states that the number of companies purchasing terrorism insurance has remained constant (in the mid-60 percent range) since 2009 and pricing has also generally remained stable.
Uncertainty over the Terrorism Risk Insurance Act's (TRIA) pending expiration at the end of the year remains and, despite government moves towards its reauthorisation, the act is currently impacting the availability and price of terrorism coverage in the US, especially as it relates to workers’ compensation.
Marsh notes in its report that the Boston Marathon bombings highlight the need for a reauthorisation bill to include a streamlined TRIA certification process that clarifies what type of event would be certified as a terrorism event and the timeframe for certification after an event occurs.
The bombing also illustrates the need for TRIA to cover terrorism events that do not meet the act’s certification thresholds.
Dan Glaser, president and CEO of Marsh, commented: “We believe TRIA is a model public-private partnership.”
“Marsh’s new report confirms there is strong, long-term demand for the insurance it backstops with more than six out of 10 companies in the survey purchasing coverage. The existence of the federal programme plays a major part in the availability and affordability of the coverage.”
