The Terrorism Risk Insurance Act (TRIA) is due for reauthorization in 2020, raising questions about how the revised law would treat acts of cyber terrorism. Libby Baney and Josh Andrews—senior director and director for FaegreBD Consulting, who lobby for the National Association of Professional Surplus Lines Offices (NAPSLO)—are asking Congress to begin assessing cyber terrorism from an insurance perspective. Andrews told Business Insurance that insurance will be “ground zero” for cyber security, which is an issue that “transcends” industries.
Baney said no current legislation addresses the issue of cyber terrorism and raised concerns about whether there is sufficient market capacity to cover the risk of cyber attacks. She added that policymakers should consult NAPSLO—a professional trade association that represents the wholesale insurance distribution system—for insight before making any decisions.