This research brief summarizes an analysis of terrorism-insurance policy. The current law produces positive outcomes for conventional attacks but does not effectively address risks that nuclear, biological, chemical, or radiological attacks present.
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.
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.
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...
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.
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.
Examines the central issues in the debate over whether to extend, modify, or end the Terrorism Risk Insurance Act of 2002, which requires insurers to make terrorism coverage available to commercial policyholders
Director, Cyber and Intelligence Policy Center; Senior International/Defense Research Analyst
Education M.A. in Asian Studies, University of Hawaii at Manoa; M.M.A.S. in strategic studies, U.S. Army Command And General Staff College; M.S. in national resource strategy, Industrial College of the Armed Forces; B.S. in business management, Park College