Washington–The Congressional Budget Office has released its cost estimate for the legislation that has extended the federal Terrorism Risk Insurance Act, predicting it will cost $1.5 billion over the next ten years.
The CBO in its analysis of the measure acknowledged that the actual costs could be far different than what it predicts, due to the unpredictable nature of terrorism. TRIA, which was extended for only two years, provides federal support for insurers after terrorism losses above certain levels.
"There is no reliable way to predict how much insured damage terrorists might cause in any specific year," said the agency, which offers objective analysis to Congress on legislation.
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