The U.S. Treasury Department has released a report on the Terrorism Risk Insurance Act of 2002. Under the terms of the act, the department, as administrator of the program was required to perform an assessment and report to Congress on its findings by June 30, 2005.

Specifically, the department examined the effectiveness of the program, the availability and affordability of such insurance for various policyholders, and the likely capacity of the property and casualty insurance industry to offer insurance for terrorism risk after the expiration of the program.

The report finds that TRIA has achieved its goals of supporting the industry during a transitional period and stabilizing the private insurance market, but does not recommend extending the program. The economy is more robust today than when TRIA was enacted, the report states, and extending it would have little impact on the economy, given its current strength. It is the Treasury's view that continuation of the program in its current form is likely to hinder the further development of the insurance market by crowding out innovation and capacity building.