The Risk and Insurance Management Society (RIMS) has backed an attempt to extend the US Terrorism Risk Insurance Act (TRIA) for another 10 years.

It comes after Congressman Bennie Thompson introduced the Fostering Resilience to Terrorism Act following the recent Boston bombings, which he calls a “stark reminder” of the threat to America.

“If TRIA is allowed to expire next year, there may be fewer insurers offering terrorism insurance and prices potentially could increase,” Mr Thompson said.

“By extending this program for 10 years, we will ensure much-needed stability and predictability for the business community.”

TRIA “provides critical financial assistance” to businesses affected by terrorism, according to Carolyn Snow, RIMS Board Liaison to the society’s external affairs committee.

“Failure to [extend it] will result in potentially damaging gaps in insurance coverage, leaving countless businesses exposed,” she said.

Congress passed TRIA in 2002 after the September 11 2001 attacks, which saw reinsurers withdraw from terrorism cover, forcing insurers to do the same.

The Act provides a government reinsurance backstop and requires business insurers to offer terrorism coverage.