Tria causing concern for risk managers

Attendees at the Risk and insurance management society (Rims) event in San Diego are calling for increased awareness about what will happen if the Terrorism Risk Insurance Act (Tria) expires as planned on December 31, 2005. There is a feeling that the US government is not giving the issue the urgent attention it needs because it believes that there is still well over a year to resolve the problem. Industry observers point out that, in fact, the renewals in January 2005 could be impacted by uncertainty about what will happen if the act expires without a facility for terrorism cover put in place. James Schiro, CEO, Zurich, says that there is a growing awareness that the issue is critical but he points out: “Congress is trying to be politically correct rather than economically correct and the situation is made more complex because it is an election year.”

Paul Bassett executive director of Aon Special Risks says he believes the chances of the act being extended are slight, he puts them at only 20%. Other possibilities include a Pool system such as