Ace Group CEO Evan Greenberg has labelled the US Congress “shameful” for not renewing the Terrorism Risk Insurance Act (TRIA), which is due to expire on December 31.

He says lawmakers are more concerned with campaigning for the November 4 congressional elections than firming a position on the Act.

“The only thing they can take time for is campaigning,” he said. “It is shameful.”

TRIA, enacted following the September 11 2001 attacks, established the Terrorism Risk Insurance Program. It has already been extended twice.

The program provides a backstop in the event of a terrorist attack resulting in aggregate insurance losses beyond $US100 million ($113 million).

In return, insurers must offer certain types of terrorism risk coverage.

Congress is scheduled to resume after the elections, but the insurance industry is increasingly frustrated at having to wait for an indication of how it will respond to TRIA.

“I consider it irresponsible of Congress to keep a question mark around the certainty of a backstop,” Mr Greenberg said.

Insurance Information Institute President Robert Hartwig shares his frustration.

“The private sector simply does not have the capacity to provide insurance or reinsurance for terrorism risk to the extent currently provided by [TRIA],” Dr Hartwig said.

“As a result, in the absence of the Act, terrorism risk insurance would be less available and less affordable.”