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Study Reveals Renewing TRIA Would Save Taxpayers Money

RAND Corp.’s latest study, “The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire,” reveals that renewing the Terrorism Risk Insurance Act could save taxpayers money for terrorist attacks causing less than $50 billion in losses...
April 17, 2014

RAND Corp.’s latest study, “The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire,” reveals that renewing the Terrorism Risk Insurance Act (TRIA) could save taxpayers money for terrorist attacks causing less than $50 billion in losses. TRIA will sunset at the end of 2014 unless it is reauthorized by Congress. The study indicates that eliminating TRIA would increase federal spending by $1.5 billion to $7 billion for attacks with losses ranging between $14 billion and $26 billion, stemming from greater uninsured losses, higher demand for federal disaster insurance and the absence of adequate insurance coverage. RAND says, “In the absence of a terrorist attack, it costs taxpayers relatively little, and in the event of a terrorist attack comparable to any experienced before, it is expected to save taxpayers money.”

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