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.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
