What triggered the need for the Terrorism Risk Insurance Program Reauthorization Act of 2015?

The Terrorism Risk Insurance Program Reauthorization Act of 2015 was primarily triggered by the attacks on September 11, 2001. These attacks highlighted a significant gap in insurance coverage regarding terrorism-related events, as many insurers were reluctant to provide coverage for acts of terrorism due to the unpredictable and potentially catastrophic nature of such incidents. The original Terrorism Risk Insurance Act (TRIA) was enacted shortly after September 11 to ensure that insurance markets remained stable and to provide a federal backstop for insurance claims stemming from acts of terrorism.

The need for reauthorization in 2015 aimed to continue providing stability to the insurance industry and to ensure that businesses could obtain necessary coverage against potential terrorist acts. This framework not only protects policyholders but also contributes to overall economic recovery and stability in the aftermath of terrorist incidents. The relevance of the other options, including economic downturns, natural disasters, and the global financial crisis, is less about directly triggering the program and more about other economic factors that may affect the insurance landscape.