TRIA EXPIRATION HAS RISK PROFESSIONALS BRACING FOR DECREASED TERRORISM COVERAGE LIMITS
RIMS’ TRIA Survey Reveals 69% of Respondents Expect Terrorism Limits to Decrease or Dissolve Without Federal Backstop
NEW YORK (October 29, 2013) — RIMS, the risk management society™, polled a group of risk professionals and the majority believe TRIA’s expiration would result in a decrease of affordable terrorism coverage or, even, the total elimination of the coverage. The survey has been added as an appendix to RIMS “Terrorism Risk Insurance Act: The Commercial Consumer’s Perspective” executive report issued in August 2013.
A key takeaway from the survey showed that 45 percent of respondents expect a decrease in terrorism coverage limits and 24 percent of respondents believe coverage would no longer be offered by insurers upon TRIA’s expiration. In addition to these findings, the survey explores the current terrorism insurance marketplace, alternative terrorism risk transfer options, as well as the impact concentration of employees/facilities has on terrorism and workers’ compensation coverages.
“It’s clear that risk professionals are concerned that TRIA’s expiration will prevent their organizations from attaining the necessary coverage to protect assets and employees from devastation caused by terrorism,” said RIMS Board Director Carolyn Snow. “TRIA is integral to keeping affordable lines of terrorism insurance available to all organizations conducting business in the United States. Without it, not only will individual organizations be more exposed in the event of a terrorist attack, our federal government would also take on the extraordinary burden of supporting its constituents during, an often costly, rebuilding process.”
The “Terrorism Risk Insurance Act: The Commercial Consumer’s Perspective” executive report, authored by members of RIMS External Affairs Committee, is designed to educate risk professionals on the TRIA implementation process, RIMS’ official position in support of its reauthorization, ongoing initiatives set to strengthen the Society’s advocacy, as well as a section responding to opposing views of the program.
The updated executive report is free and can be downloaded in RIMS revamped Risk Knowledge library: www.rims.org/RiskKnowledge.