Terrorism Risk Insurance

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.

  • Rob Cox and Kenneth Feinberg at RAND's Politics Aside 2014

    Blog

    In the Wake of Disaster: Practical and Philosophical Challenges of Victim Compensation

    When tragedy strikes, Kenneth Feinberg is often the person companies and governments turn to for help to determine appropriate monetary compensation. At RAND's Politics Aside event last week, he shared some of his thoughts on what goes into making those decisions, and why it's so important to meet with victims.

    Nov 20, 2014

  • Report

    The Future of the Terrorism Risk Insurance Act

    Recounts the proceedings of a conference to discuss recent RAND research on issues related to the potential reauthorization of the Terrorism Risk Insurance Act, as well as the varying implications of TRIA's expiration, modification, and extension.

    Sep 2, 2014

  • A sheriff walks toward the cyber horizon.

    Periodical

    RAND Review Takes Measure of Cybercrime, Medical Innovation, U.S. Security Cooperation

    Stories in RAND's flagship magazine discuss the duel between cybercrime and the law, the gamble of medical innovation, and the fruits of U.S. security cooperation.

    Aug 7, 2014

  • Astronomical observatory

    Periodical

    RAND Review: Vol. 38, No. 2, Summer 2014

    The cover story discusses the rising wave of cybercrime and possible responses to it, while other features highlight research on medical innovation and U.S. security cooperation, plus public policy insights from Victor Hugo.

    Aug 7, 2014

  • U.S. Capitol building with summer flowers

    Blog

    Summer Reading for Congress

    No matter how policymakers spend their break—meeting with home-state constituents, traveling abroad with congressional delegations, or spending time with family—this summer reading list contains policy ideas that can help them hit the ground running when they return.

    Jul 31, 2014

  • A man passes by the skyline of New York's Lower Manhattan and One World Trade Center as he walks through Liberty State Park in Jersey City, NJ

    Blog

    RAND Research Influences Debate on Terrorism Insurance

    To inform the debate on whether the Terrorism Risk Insurance Act (TRIA) should be continued or allowed to expire, RAND prepared policy briefs on three topics of central concern to policymakers: national security perspectives, the impact on federal spending, and the impact on workers' compensation markets.

    Jun 19, 2014

  • The Tribute in Light is illuminated on the skyline of New York's Lower Manhattan as people look across the Hudson River in Jersey City, September 11, 2013

    Commentary

    3 Terrorism Risk Insurance Act Facts for Congress to Consider

    With the Terrorism Risk Insurance Act set to expire this year, Congress is currently revisiting a crucial question: What is the appropriate government role in terrorism insurance markets? As the debate unfolds on Capitol Hill, policymakers should consider three key research findings.

    Jun 12, 2014

  • Congressional Briefing Podcast

    Multimedia

    The Future of the Terrorism Risk Insurance Act: Expiration, Reauthorization, Modification

    In this June 2014 Congressional Briefing, RAND experts presented findings from their recent work on the Terrorism Risk Insurance Act (TRIA) and discuss the different outcomes if TRIA were to be reauthorized, modified, or allowed to expire.

    Jun 11, 2014

  • Person filling out a work injury claims form

    Report

    Allowing Terrorism Risk Insurance Act to Expire Would Negatively Impact Workers' Compensation Insurance Markets

    Without TRIA in place, employers perceived to be at high risk for terrorism might have to obtain workers' compensation coverage in markets of last resort, known as residual markets, which could charge higher premiums.

    May 7, 2014

  • News Release

    Extending Terrorism Insurance Program Could Save Federal Government Money After Future Attacks

    The Terrorism Risk Insurance Act will expire soon and Congress is considering the appropriate government role in terrorism insurance markets. In a terrorist attack with losses up to $50 billion, the federal government would spend more helping to cover losses than if it had continued to support a national terrorism risk insurance program.

    Apr 10, 2014

  • New York City firefighters pour water on the wreckage of 7 World Trade Center in Sept. 2001

    Report

    Extending Terrorism Insurance Program Could Save Federal Government Money After Future Attacks

    The Terrorism Risk Insurance Act will expire at the end of this year and Congress is considering the appropriate government role in terrorism insurance markets. In a terrorist attack with losses up to $50 billion, the federal government would spend more helping to cover losses than if it had continued to support a national terrorism risk insurance program.

    Apr 9, 2014

  • News Release

    Expiration of Terrorism Risk Insurance Act Could Hurt National Security

    The current terrorism risk insurance act will expire in 2014 and Congress again is considering the appropriate government role in terrorism insurance markets.

    Mar 6, 2014

  • A group of firefighters walk amid rubble near the base of the destroyed World Trade Center in New York on September 11, 2001

    Report

    Expiration of Terrorism Risk Insurance Act Could Hurt National Security

    The current terrorism risk insurance act will expire in 2014 and Congress again is considering the appropriate government role in terrorism insurance markets. If the act expires and the take-up rate for terrorism insurance falls, then the U.S. would be less resilient to future terrorist attacks.

    Mar 6, 2014

  • train track switch

    Research Brief

    Robust Decision Making Aids Planning Under Deep Uncertainty

    Quantitative analysis is often indispensable to sound planning, but with deep uncertainty, predictions can lead decisionmakers astray. Robust Decision Making supports good decisions without predictions by testing plans against many futures.

    Feb 28, 2013

  • Periodical

    Beyond the Shadow of 9/11

    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.

    Sep 1, 2011

  • Research Brief

    Evaluating Alternatives for Renewing TRIA in an Uncertain World

    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.

    Mar 3, 2008

  • News Release

    Taxpayers, Policyholders Benefit from Terrorism Risk Insurance Program

    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.

    Oct 10, 2007

  • Visitors to the 911 Memorial plaza peer through glass windows into the 911 Memorial Museum at the World Trade Center site in New York

    Report

    Taxpayers, Policyholders Benefit from Terrorism Risk Insurance Program

    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.

    Sep 25, 2007

  • Report

    Should the Terrorism Risk Insurance Act of 2002 Be Extended?

    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.

    May 28, 2007

  • A cruise ship berthed in Miami

    Report

    Maritime Terrorism Risk Extends Beyond Dangers Posed to Container Shipping

    Maritime counterterrorism efforts should not only focus on the security of cargo container ships, rail cars and trucks. Cruise ships and ferry boats need more protection against terrorist attacks that could kill and injure many passengers and cause serious financial losses.

    Oct 13, 2006