The powerful Risk and Insurance Management Society (RIMS) wants the US Government to speed up its “act of terrorism” certification process, so insured claims can be quickly settled.

RIMS recommends a 60 to 90-day deadline after an event for the Treasury Secretary to make a formal decision on its certification status concerning the Terrorism Risk Insurance Act (TRIA).

It also suggests a 30-day extension if more time is needed to make a decision.

It argues setting a deadline will do much to help an affected community’s rebuilding efforts.

RIMS President Richard Roberts says policyholders were left in “limbo” when the Government took many months to make a decision on the 2013 Boston Marathon bombings.

“Those that had chosen to purchase terrorism coverage were unable to have claims paid under

that coverage, [because] policies typically required the act to be certified,” Mr Roberts says in a letter to the US Treasury.

“Likewise, those business-owners who had chosen to forego terrorism insurance were at risk of having claims denied if the act was certified, [because] acts of terrorism are generally excluded from standard property and casualty policies.”

A quick certification process will also allow all parties, including the Government and insurers, to have a realistic estimate of anticipated loss.

TRIA was introduced after the September 11 2001 attacks, when insurers began to withdraw terrorism cover. It provides a reinsurance backstop for major events.

Australia has a similar program, the Australian Reinsurance Pool Corporation, which is backed by a $10 billion Commonwealth guarantee. The terrorism reinsurance scheme was used for the first time after the Lindt café siege in Sydney last December.