After the terrorist attacks of Sept. 11, 2001, insurance coverage for terrorism largely disappeared. The following year, Congress passed the Terrorism Risk Insurance Act to help commercial property-casualty policyholders obtain terrorism insurance and give the insurance industry time to develop mechanisms to provide such insurance after the act expires on Dec. 31, 2005.

The United States General Accounting Office recently assessed the Treasury's progress in implementing TRIA and how the act affected the terrorism insurance market. Among its actions, the Treasury has issued regulations, created and staffed the Terrorism Risk Insurance Program office, and begun mandated studies and data collection efforts. However, a decision has not been made whether to extend the mandate that insurers “make available” terrorism coverage, using terms not differing materially from other coverage, for policies issued or renewed in 2005.

TRIA has enhanced the availability of terrorism insurance for commercial policyholders, largely fulfilling a principal objective of the legislation. In particular, TRIA has benefited commercial policyholders in major metropolitan areas perceived to be at greater risk for terrorist attacks. Prior to TRIA, GAO reported concern that some development projects had been delayed or canceled because of the unavailability of insurance.