The Risk and Insurance Management Society (RIMS) has told US legislators that obtaining terrorism insurance without federal assistance would not be practicable or affordable.

Speaking at a congressional hearing on the terrorism threat and the insurance market’s ability to handle terrorism risk insurance, RIMS Director of External Affairs Terry Fleming said RIMS members are concerned about the affordability of terrorism insurance after the Terrorism Risk Insurance Act (TRIA) is cancelled at the end of next year. He says many US companies will be left without cover and vulnerable to bankruptcy.

He says it is crucial for a program similar to TRIA to be developed to provide continued cover against acts of terrorism. A RIMS survey found 86% of members believe it will be harder to obtain terrorism cover when TRIA expires.