Looming Terrorism Threats as TRIPRA Expires in 2020
The global property terrorism insurance market remains strong with sufficient capacity to respond to today’s predominant terrorist threats, according to the 2019 Terrorism Risk Insurance Report. Continued stability of the US property terrorism insurance market, however, is a point of focus as the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) is set to expire in 2020.
According to the report, the predominant terrorism threat globally remains from extremists focused on inflicting mass casualties in unsophisticated attacks on crowded public spaces rather than large-scale property damage. The report notes that should Congress allow TRIPRA to expire without a replacement, it could create capacity shortfalls, especially for businesses located in high profile cities and employers with significant workers’ compensation accumulations.