Uncertainty over the future of terrorism insurance has sparked a fierce debate in the US.

The Terrorism Risk Insurance Act – which allows the Federal Government and the insurance industry to share losses from any major attack – is to expire at the end of next year.

Three bills have been introduced proposing to extend it for between five and 10 years.

Insurance industry figures back an extension, but they have drawn fire from the Consumer Federation of America (CFA), which has called them “nervous nellies”.

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