Nearly one-quarter of risk professionals believe affordable terrorism coverage will be wiped out in the US after the Terrorism Risk Insurance Act (TRIA) expires next year.

About 45% expect a decrease in terrorism coverage limits, according to a survey of Risk and Insurance Management Society (RIMS) members.

“It’s clear risk professionals are concerned that TRIA’s expiration will prevent their organisations from attaining the necessary coverage to protect assets and employees from devastation caused by terrorism,” RIMS director Carolyn Snow said.

Ms Snow wants TRIA extended well beyond next year. She says it is integral to keeping affordable lines of terrorism insurance available.

“Without it, not only will individual organisations be more exposed in the event of a terrorist attack, but our Federal Government would also take on the extraordinary burden of supporting its constituents during an often costly rebuilding process.”

The government-backed reinsurance program was launched in 2002 when terrorism cover fell away after the September 11 attacks of the previous year.

About 85% of survey respondents bought or renewed terrorism cover for US risk in the 18 months before the August study. Some 80% also expect difficulty obtaining workers’ compensation coverage if TRIA is not extended.

RIMS says if TRIA ends the private insurance market alone is unlikely to provide the amount of terrorism cover required.