Extension of federal terrorism insurance is needed for the protection of insurance policyholders and the country's economic stability, says the Risk & Insurance Management Society Inc. in an executive report issued Tuesday.

The report, “Terrorism Risk Insurance Act: The Commercial Consumer's Perspective,” which was written by members of New York-based RIMS' external affairs committee, also discusses TRIA's history and evolution, how the current TRIA program works and its significant features, as well as addressing various TRIA concerns.

TRIA “should be continued in some form,” concludes the report. “Many Western countries that are facing the risk of terrorism have long had national programs to protect its citizens and economies.

“RIMS believes that the extension should offer a long-term solution to the risk of terrorism and that the solution should require the inclusion of coverage for (nuclear, biological chemical and radiological terrorism) risks. We believe that enactment of the extension will promote stability and serve to solidify the business and economic needs of our country.”

RIMS board director Carolyn Snow said in a statement: “The challenge of predicting the extent of damages that could result from terrorism prevents insurers from providing their clients with adequate and affordable insurance. This uncertainty has forced organizations to rely on TRIA to fulfill those coverage gaps.

“With no indication from government as to their plans for the future of TRIA, risk professionals and insurance providers will run into major roadblocks when developing suitable risk financing programs, especially during the renewal process.

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“RIMS' External Affairs Committee has developed this comprehensive resource to help risk practitioners better understand the implications of TRIA's expiration, encouraging them to join our fight for a long-term TRIA resolution.”

Members of the external affairs committee who wrote the report are Nathan Bacchus, RIMS senior government affairs manager; Scott B. Clark, risk and benefits officer, Miami-Dade County Public Schools; and Richard Rabs, vice president, insurance and risk, for Veolia Environnement North America.

Copies of the report are available here.

Three bills have been introduced in Congress to extend TRIA to date.