More than a decade since 9/11, the Terrorism Risk Insurance Program continues to deliver “substantive direct benefits to millions of businesses, workers, consumers and the overall economy – all at essentially no cost to taxpayers.”

This was a key takeaway from testimony delivered yesterday by Dr. Robert Hartwig, I.I.I. president and chief economist, at a Senate Banking Committee hearing.

Dr. Hartwig noted:

The war on terror is far from over, as the recent Boston Marathon bombings attest, but TRIA by all objective measures is now a proven and unqualified success.”

Dr. Hartwig pointed out that upwards of 60 percent of businesses purchased terrorism coverage nationally in 2012, up from 27 percent in 2003.

Industries responsible for much of the country’s critical infrastructure such as power and utilities, telecommunications and healthcare, along with financial institutions and local government have take-up rates that approach or exceed 70 percent, Dr. Hartwig said.

Moreover, the take-up rate for workers compensation is effectively 100 percent, meaning that every worker in America is protected against injuries suffered as the result of a terrorist attack.

But it is important to note that the majority of coverage that exists in the market today exists because of the continued existence of the Terrorism Risk Insurance Program, Dr. Hartwig said.

He went on to warn of dire economic consequences if TRIA is not renewed:

A sharp spike in business failures, higher unemployment and reduced GDP growth are just a few of the adverse consequences that are certain to follow in the event of a major terrorist attack in the absence of TRIA.”

Dr. Hartwig noted that the unambiguous success of TRIA demonstrates that the Act has become an invaluable component of the country’s national security infrastructure, adding:

Failure to institutionalize a permanent plan to protect the nation’s financial infrastructure leaves the country unnecessarily vulnerable to economic instability and risk of recession.”

Also check out a recently updated I.I.I. paper on terrorism risk.

PC360 has more on this story.