Run Time: 7:41
A World With or Without TRIA
Since the creation of the federal terrorism reinsurance program in 2002 until now the market for standalone terrorism insurance or embedded terrorism insurance has improved greatly. But what will the market look like should the federal terrorism risk insurance program, expire on Dec. 31, 2014.
Right now, there’s plenty of capacity in the marketplace, says Rob Cruz, southwest regional executive and senior vice president of Hiscox USA. The terrorism insurance market has so much capacity today, rates have dropped tremendously since the days of 2002 when Congress enacted the first terrorism insurance backstop, known as TRIA. But if Congress allows TRIA to expire at the end of next year, how will property insurance markets react? According to Cruz, it’s still too early to tell.