Terrorism Risk Insurance Act (TRIA)

The Terrorism Risk Insurance Act (TRIA) is a U.S. federal law enacted in 2002 to help stabilize the insurance market after the September 11 attacks. It establishes a partnership between the government and private insurance companies, where the government provides a backstop for insurers in case of significant losses due to terrorist attacks. This means that if a terrorist incident results in high claims, the government covers a portion of the costs, ensuring that insurers can still offer coverage for terrorism-related risks. TRIA is aimed at maintaining insurance availability and affordability for businesses and individuals.