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The U.S. Government Accountability Office recently released a report demonstrating that the Terrorism Risk Insurance Act (TRIA) reauthorizations through 2015 have decreased federal fiscal exposure, and insurers have adjusted by managing their increased risk. In December 2019, Congress reauthorized TRIA through 2027. Read the full report.

After the Sept. 11 attacks, insurers generally stopped covering terrorism risk. Through the Terrorism Risk Insurance Act, Congress sought to ensure available, affordable commercial insurance for this risk. Under this program, the government and insurers share losses.

Since 2003, the share of any losses insurers would pay has increased and the federal government’s share (and related fiscal risk) has decreased.

Some insurers may not fully understand program parameters, such as how the Treasury Department determines when government participation starts and when its payment limit has been reached. GAO recommended Treasury clarify this for insurers.