Transitions in Terrorism Insurance: The Debate over TRIA

Barbon Discussion Paper No. 06-04

29 Pages Posted: 10 Nov 2006  

Anne Layne-Farrar

Charles River Associates; Northwestern University

Daniel D. Garcia-Swartz

Charles River Associates - Chicago Office

Date Written: November 2006

Abstract

In this paper we summarize the motivations for enacting the Terrorism Risk Insurance Act (TRIA) and provide a brief description of its provisions. We then turn to the controversy over TRIA's extension. Multiple views over the role of government in terrorism insurance have been expressed in both the academic and the popular literatures. Even the federal government is divided concerning the efficacy of TRIA. We cull what lessons we can from the debate and its many points of view. We conclude that TRIA has served a useful purpose as a temporary stopgap measure, allowing the industry much needed time to regroup in the face of a dramatically altered risk landscape.

Keywords: TRIA, Terrorism, Regulation, Insurance

Suggested Citation

Layne-Farrar, Anne and Garcia-Swartz, Daniel D., Transitions in Terrorism Insurance: The Debate over TRIA (November 2006). Available at SSRN: https://ssrn.com/abstract=943772 or http://dx.doi.org/10.2139/ssrn.943772

Anne Layne-Farrar (Contact Author)

Charles River Associates ( email )

1 South Wacker Drive
Suite 3400
Chicago, IL 60606
United States
312-377-9238 (Phone)

HOME PAGE: http://www.crai.com

Northwestern University ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

Daniel D. Garcia-Swartz

Charles River Associates - Chicago Office ( email )

1 S.Wacker Drive # 3400
Chicago, IL 60606
United States

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