The Risk and Insurance Management Society (RIMS) has commended the US Congress for authorising a seven-year extension of the Terrorism Risk Insurance Act (TRIA), providing a critical financial backstop.

A federal law since the wake of the 9/11 attacks in 2001, TRIA was set to expire at the end of this year. A bill signed by President Donald Trump in December extends it until the end of 2027.

“TRIA’s reauthorisation allows risk professionals to continue to be proactive, to take measures to mitigate risks before they manifest and allocate resources more effectively,” RIMS President Gloria Brosius said.

TRIA has made terrorism insurance available and affordable by agreeing to reimburse insurers for losses which result from a certified act of terrorism. No act of terrorism in the US has triggered the law.