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Abstract

Using RAND's robust decisionmaking approach, researchers assessed three TRIA-related policy interventions. Results show that the 2007 version of TRIA reduces taxpayer costs across a broad range of scenarios relative to taxpayer costs in the absence of a government terrorism-insurance program and produces positive outcomes in a number of other dimensions for conventional attacks. But the 2007 version of TRIA does not effectively address the risks that NBCR attacks present to either businesses or taxpayers; a robust strategy that both hardens the cap and lowers the deductible is critical to achieving positive outcomes when TRIA is expanded to require insurers to offer coverage for both NBCR and conventional attacks.