As a result of the dreadful terrorist attacks of September 11, 2001, the property/casualty insurance industry suffered losses of almost $21 billion after taxes ($32 billion before taxes). Although a tax write-off of 35 percent is a significant financial benefit to insurers, Congress enacted the Terrorism Risk Insurance Act in 2002 to ensure that terrorism coverage was affordable and available in the aftermath of this unprecedented event. Congress also wanted to assure that a lack of affordable terrorism insurance did not set off a chain reaction that would prevent large construction projects from going forward, thus harming the overall economy.
