The financial losses and claims on companies following the terrorist attacks of September 11, 2001, led the United States to examine the role of terrorism risk insurance. RAND has researched and advised policymakers about terrorism risk management in general and, in particular, the Terrorism Risk Insurance Act (TRIA), a U.S. law designed to limit insurers’ financial losses following acts of terrorism, which has been extended twice and is now due to expire in 2014.
PERIODICAL
The 10th anniversary of the 9/11 terrorist attacks warrants a thoughtful review of America's progress and future strategy. In this RAND Review cover story, RAND experts offer perspectives on Afghan-led solutions, ways to counter al Qaeda, air passenger security, and compensation for those affected by terrorism.
NEWS RELEASE
Taxpayers save money and businesses are better protected with the Terrorism Risk Insurance Act (TRIA) in place than if the act is allowed to expire.
REPORT
Taxpayers save money and businesses are better protected with the Terrorism Risk Insurance Act (TRIA) in place than if the act is allowed to expire. TRIA allows the insurance industry to play a larger role in compensating losses caused by smaller terrorist attacks by transferring some of the risk for the largest attack to the government.
REPORT
Interim findings from a RAND Center for Terrorism Risk Management Policy project suggest that the Terrorism Risk Insurance Act performs well on outcomes examined for conventional attacks but not for chemical, biological, radiological, or nuclear ones.
JOURNAL ARTICLE
High take-up rates for terrorism insurance or other forms of compensation for terrorism losses can enhance economic resilience after an attack and encourage national cohesion and post-event solidarity.
RESEARCH BRIEF
How does the Terrorism Risk Insurance Act (TRIA) align with the evolving terrorism threat? Transnational and domestic terrorism trends reveal that TRIA does not provide adequate financial protection, particularly in the face of economically motivated...
REPORT
The Terrorism Risk Insurance Act (TRIA) creates an effective mechanism for sharing the financial risk that businesses face from terrorism. Still, less than half of all businesses have terrorism insurance; the U.S. government should consider encouraging these businesses to buy coverage.
REPORT
The terrorism insurance system in the United States is failing to provide businesses with adequate financial protection, leaving the nation vulnerable to economic disruption if there is a major terrorist attack.
REPORT
Following the 9/11 terrorist attacks, the federal government adopted the Terrorism Risk Insurance Act (TRIA), which requires insurers to make terrorism coverage available to commercial policyholders. In exchange, the federal government will reimburse insurers for a portion of insured losses above a particular threshold. This paper frames the central issues in the debate over whether to extend, modify, or end TRIA, and explores the role of…
RESEARCH BRIEF
This study simulates the expected losses from three modes of terrorist attacks and shows how the Terrorism Risk Insurance Act (TRIA) would distribute the resulting losses.
JOURNAL ARTICLE
The technical difficulties involved with assessing and pricing terrorism risk are similar to those associated with assessing and pricing natural disaster risk. Like other catastrophe risks (such as those associated with natural disasters), terrorism risk is both difficult to price and difficult to diversify. However, the enactment of the Terrorism Risk Insurance Act of 2002 (TRIA) marked a departure from existing federal catastrophe…
JOURNAL ARTICLE
Investigates the rationale for government intervention in the market for terrorism insurance, focusing on the externalities associated with self-protection.
PEOPLE
Senior Economist
Ph.D. in economics, Johns Hopkins University; M.S. in economics, Illinois Institute of Technology; B.S. in economics, Illinois Institute of Technology
PEOPLE
Senior Economist
Ph.D. in economics, University of California, Berkeley; B.A. in political science, B.S. in general engineering, Stanford University
RAND® is a registered trademark. Copyright © 1994-2012 RAND Corporation.