As several airstrikes on ISIS targets in Syria were declared “successful” Tuesday, President Barack Obama labeled the Islamic State of Iraq and Syria (ISIS) a “severe threat” to the American people. The words and actions follow increased threats from the terrorist group, which last week called for the murder, execution and mass slaughter of Americans and other citizens of the Western world.
“I have made it clear that we will hunt down terrorists who threaten our country, wherever they are,” Obama said. “This is a core principle of my presidency: If you threaten America, you will find no safe haven.”
While the US government gears up for a sustained campaign against ISIS, leaders in the insurance industry are questioning carriers’ ability to insure against risks posed by the group and other terrorist organizations and the Al Qaeda splinter group, the Khorasan.
Dr. Robert Hartwig, economist and president of the Insurance Information Institute, said the threats underline the need for swift reauthorization of the Terrorism Risk Insurance Program (TRIA), currently set to expire at the end of the year.
“The private sector does not have the capacity to provide insurance or reinsurance for terror risk to the extent currently provided by TRIPRA,” Hartwig said. “Coverage for terrorist-caused economic damages would likely be more costly, or limited in scope, if the federal government played no role in this market.”
Hartwig added that in the face of increasing threats from ISIS, the need for reauthorization of the program is particularly dire.
“The recent intensification of threats to American interests around the world from new terrorist organizations, including ISIS and Khorasan, demonstrate the need for TRIPRA’s extension,” said Dr. Hartwig. “Since its creation in 2002, the federal Terrorism Risk Insurance Act, and its successors, have been critical components of the U.S.’s national economic security infrastructure.”
The program provides federal assistance to insurers and reinsurers in the face of an extremely costly act of terrorism. It was established after the 9/11 terrorist attacks, which resulted in insured losses of roughly $42.9 billion in 2013 dollars.
Congress is currently in recess until after the November midterm elections, allowing lawmakers little time to reauthorize TRIA and provide a potentially needed backstop for insurers to guard against risks posed by ISIS and the Khorasan.
