They’re notoriously slow, but US senators have at last held a hearing into the need to reauthorise the Terrorism Risk Insurance Act (TRIA), which has less than three months of life remaining. The Act was passed two years ago to help insurers cover losses stemming from any future terrorist attack.

Senator Christopher Dodd, one of the leading lights behind the original act, says insurance contracts due to be renewed over the next few months are affected by the TRIA and Congress only has about 12 weeks to act without having a negative effect on the economy.

The Terrorism Insurance Backstop Extension Bill is scheduled for draft changes tomorrow, but it has not yet been scheduled for debate in the Senate.

The insurance industry is calling for an extension to the end of 2007.