The Terrorism Risk Insurance Act (TRIA), expiring end of 2020 is going to be prolonged and expanded.
US-national insurance covering terrorism is going to be extended for a further seven years. The state insurance package includes $1.4 trillion. It was approved by the US House of Representatives with 385 votes in favour and 22 against and is now being passed in the Senate. A final signature by President Donald Trump is considered secured.
In the new period of validity, a study on the danger of cyber risks is also secured within the program. This will counter the increasing danger of cyber terrorism. In many cases, there is still no national legal regulation on how to deal with the immense damage that can be caused by this type of terrorism. In Europe, too, new business has developed for insurance companies. However, in an “Act of War”, insurance protection from private insurers is usually excluded. This is particularly applying in the case of terrorist attacks. It is therefore important for state funds to intervene here.
There are different national regulations in Europe. In Germany, for example, the so-called “Extremus Versicherungs-AG” was created. The insurance covers damage caused by terrorism of up to € 2.5 billion a year. With the support of the Federal Government, this sum is increased to € 10 billion. For all insurance companies, the problem remains that the basis for payment must be a terrorist act, then. In times of hybrid warfare it is sometimes difficult to prove the existence of terrorism. It is usually a political decision whether an act is classified as a terrorist act or not.