• the current environment, which remains competitive and where capacity remains stable;
• how the change in definition of “certified” acts of terrorism in the Terrorism Risk Insurance Act (TRIA) affects the standalone insurance market; and
• notable terrorism products and offerings, including new Bowring Marsh facility and NBCR products.

Read the latest issue of Marketwatch.

Background on TRIA

On December 18, 2007, Congress approved the extension of the Terrorism Risk Insurance Act (TRIA) and sent the bill to the President for his signature. It was signed by President Bush on December 26, 2007.

The Terrorism Risk Specialty, a division of the Property and Multinational Practice, has created a document that outlines the new extension and discusses the changes. Highlights of the extension are:

• 7-year term
• Elimination of the distinction between acts of foreign and domestic terrorism
• $100 million trigger (same as expiring version of the Act)
• 20% insurer retentions (same as expiring)
• 15% insurer quota share retention excess of retention (same as expiring)
• Acceleration of recoupment in the event of a loss and elimination of the 3% maximum per year on the amount of the recoupment. In the event of a loss, policyholder surcharges could be significant depending on amount of loss the period of recovery.

New Report and Guidance Now Available

Read our full report on the extension of TRIA.

The Department of the Treasury has issued interim guidance on the new TRIA extension that was signed into law on Dec. 26, 2007. In addition to extending the program for seven years, the extension law also eliminated the distinction between "foreign" and "domestic" acts of terrorism, and modified the program's $100 billion liability cap and the associated insurer disclosures related to that cap.

While this guidance is being provided primarily for the benefit of the insurers, it can be quite useful insureds as well. Essentially, this document provides instructions to insurers now that they are required to offer an expanded version of terrorism coverage. It is useful in understanding TRIA and its changes.

Read the Treasury guidelines.

Visit our 2010 U.S. Insurance Market Report Web Site

Read the Terrorism Risk Specialty's update on the standalone terrorism insurance market for the first quarter 2009.

View our TRIA e-briefing, an online presentation featuring Jill Dalton and Ben Tucker of Marsh's Terrorism Risk Specialty. The briefing covers the recent activities in Congress regarding the law's extension. A presentation document only is also available.

Terrorism loss arising out of a nuclear, biological, chemical, or radiological (NBCR) attack is a major concern of many insureds. Read our report, which discusses various NBCR solutions and products available in the marketplace.

Download a brief document that details terrorism risk insurance and how captives may be an appropriate insurance solution for some companies.

Download Marsh's Property and International Practice's publication discussing standalone terrorism market solutions as viable alternatives, especially if TRIA is not extended past December 31, 2007.

Read Marsh's briefing detailing alternatives and options for companies to reserve capacity in the event TRIA is allowed to expire or is materially changed.

Download a copy of Marketwatch: Terrorism Insurance 2006—Market Conditions and Analysis or request a hard copy of the report by completing this form.

Read Marsh's Property Practice's summary of the President's Working Group on Financial Markets report on the long-term availability and affordability of terrorism insurance.

Download Marsh's Marketwatch: Terrorism Insurance 2006.

Industry Insights

Chemical Industry: A Look at Terrorism Insurance Take-up Rates