The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire

The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire

Tom LaTourrette
Noreen Clancy
Copyright Date: 2014
Published by: RAND Corporation
Pages: 20
https://www.jstor.org/stable/10.7249/j.ctt6wq8dx
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  • Book Info
    The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire
    Book Description:

    Congress enacted the Terrorism Risk Insurance Act (TRIA) in response to the terrorism insurance industry contraction after the 9/11 attacks. With TRIA set to expire, this policy brief examines the federal spending implications of TRIA. The authors find that, in the absence of a terrorist attack, TRIA costs taxpayers relatively little, and in the event of an attack comparable to any experienced before, it is expected to save taxpayers money.

    eISBN: 978-0-8330-8636-5
    Subjects: Political Science, History, Sociology, Population Studies

Table of Contents

  1. The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire
    (pp. 1-20)
    Tom LaTourrette and Noreen Clancy

    When the terrorist attacks of September 2001 took the world by surprise, insurance markets were caught unprepared. Terrorism risk insurance quickly became unavailable or, when offered, extremely costly. Congress reacted to the contraction of terrorism insurance markets by passing the Terrorism Risk Insurance Act (TRIA), which provides a government reinsurance backstop in the case of a terrorist attack that spreads risk across the entire commercial insurance industry and possibly covers the most extreme losses.

    Extended first in 2005 and again in 2007, TRIA is now set to expire at the end of 2014, and Congress is again considering the appropriate...