TRIA Extension Debated

Congress’ recent extension of the Terrorism Risk Insurance Act is largely viewed as a temporary solution, according to a forum held by GE Insurance Solutions’ Insurance Leadership Institute.

TRIA, designed as a federal backstop for the insurance industry in the event of a foreign terrorist attack, was extended by Congress in December 2005 until the end of 2007. The insurance industry sees terrorism as an unquantifiable, unpredictable risk; therefore, setting a proper premium price to compensate for its exposures is near impossible.