Congress Skeptical As TRIA Expiration Looms Insurers must overcome perception that government backstop is an industry bailout

The signing of the Terrorism Risk Insurance Act by President George W. Bush two years ago was the “Story of the Year” in NUs 2002 “Top 10″ list, but it took months of debate and passage by a conflicted, lame duck Congress to finally get the bill into law.

TRIA was designed as a temporary bridge to allow time for a private terrorism insurance market to develop, with the law scheduled to expire on Dec. 31, 2005. However, the industry contends the exposure remains too large and unpredictable for private carriers to shoulder the entire burden alone, and has been lobbying hard for an extension.

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