Claims News Service, Oct. 4, 10:56 a.m. EDT — In a new report,GE Insurance Solutions examines the debate over extension of TheTerrorism Risk Insurance Act (TRIA) and its effect on the workers'compensation system.

In the paper titled “TRIA Sunset and Its Impact on Workers'Compensation,” Bill Carney, workers' compensation product leader,writes on the possible sunset of TRIA and the consequences for theworkers' compensation delivery system should a chemical,biological, nuclear or radiological (CBNR) attack or similarcatastrophic terrorist event occur.

“If TRIA is allowed to expire at the end of the year, workers'comp insurers and self-insured employers cannot exclude terrorismcoverage, unlike property insurers,” says Carney. “Consequently,there's a great deal at stake here, not the least of which is thefuture of the system which was designed to protect America'sworkers.”

The article suggests that in the absence of a public-privatepartnership such as TRIA, the workers' comp market may shrink inmajor metropolitan areas due to a shortage of market capacity,reinsurance availability, and pressures from rating agencies.

“The role of insurance is to help foster a sound economy,” saysCarney. “That's why insurers are advocating the extension of TRIA —so that they can withstand the financial impact of future terroristattacks and continue to provide people and businesses with thesupport they need.”

Carney also addresses the challenges businesses face inmitigating their terrorism exposures, particularly with respect toworkers' compensation. In addition, he discusses the emergence ofalternative risk transfer mechanisms, the efficacy of stateguaranty funds, and the impact of the TRIA debate onself-insurance.

More information about the International Association ofIndustrial Accident Boards and Commissions Journal can be found atwww.iaiabc.org/publications/journal.htm,www.geinsurancesolutions.com.