Overview
In a post-9/11 world, the insurance industry and the federal government continue to be crucial players in ensuring the economic vitality of New York City and other cities across the country.
In November 2002, 14 months after 9/11, Congress and the White House created an insurance backstop program called the Terrorism Risk Insurance Act (TRIA). Since then, TRIA has served the insurance industry as a federal backstop for the payment of claims for certified acts of foreign terrorism in which the damages exceed $5 million. Unless Congress and the White House extend TRIA or replace it with another program, TRIA will expire on December 31, 2005.
In this report, the Partnership for New York City identifies options policy makers have to ensure that businesses have access to adequate coverage at premiums businesses can afford.
$47B
Insurance claims of about $47 billion were paid out following the 9/11 attacks.
$16B
The net damage to New York City’s economy after insurance claims and federal funding was still at least $16 billion.