The letter asks the GAO to project the actual and estimated costs of TRIA to the U.S. government and taxpayers since its inception, including specifically administrative costs, payments to insurers, congressional and administration budget scores and the risk assumed by the federal government.

The letter also asks the GAO to project, absent TRIA, what would be the estimated cost to taxpayers and the economy in the event of an attack similar in size to the September 11 attacks. It further asks the GAO to take into account any historical evidence that the federal government has been called upon to provide disaster relief for man-made and natural disasters of a similar size.

The representatives ask detailed questions in the letter, including how the availability and price of lines of coverage from which terrorism risk may not be excluded by law—in other words, workers' compensation and certain fire-following losses—change if TRIA was not reauthorized.

In its TRIA commentary, S&P raises concerns that “the form” of a renewed TRIA program “could differ significantly.” The analysts says that would leave insurers holding the bag for higher costs of a terrorism-risk event.

Changes could include, according to S&P, a higher industry event trigger for terrorism attacks, higher deductibles, greater coinsurance requirements, lower total coverage limits, greater recoupment and more coverage exclusions (i.e., conventional terrorism events).

Two large higher-education institutions in Texas also weighed in on TRIA, sending a letter to Rep. Jeb Hensarling, R-Texas, chairman of the House Financial Services Committee, expressing their views regarding the importance of the program.

In a March 11 letter obtained by PC360, the University of Texas System says,

“Should Congress allow TRIA to expire, it is highly likely that many insurers would retract from the marketplace, coverage offered would be more restrictive, and premium costs for this coverage would increase significantly.”

It adds, “If reasonably affordable coverage is no longer available, UT System would be less inclined to purchase market-priced coverage, resulting in increased financial exposure to its institutions and the state of Texas.”

In an earlier letter to Hensarling last November, R. Bowen Loftin, president of Texas A&M University, said the university hosts a variety of public events every day, “and also conducts sensitive, and, indeed, classified research for sponsoring federal agencies.” The letter notes that these events raise the risk profile of facilities throughout the university's campus.