A TRIA for Cyber Risk?October 1, 2019
Facing widespread losses from terrorism after the 2001 terrorist attacks, Congress created the Terrorism Risk Insurance Act (TRIA) to ensure the availability of terrorism-related insurance coverage while providing the private insurance industry with certainty regarding the outer limits of the financial risks it is undertaking.
While yet another extension of the terrorism insurance program is being debated in Congress, there are new calls for a similar program for cyber risk. Some suggest that now Congress should consider a similar mechanism to address cyberattacks, especially given that cyber activity has increased as a part of the global economy and demand for insurance coverage has risen.
READ: A federal backstop for insuring against cyberattacks?