Chubb has called for an extension to the US Terrorism Risk Insurance Act (TRIA).

Under the terms of the TRIA programme, the US Treasury effectively reinsures terrorism risks. TRIA is currently scheduled to end in 2005.

But Chubb vice-chairman John Degnan has called for TRIA to be extended to ensure that the insurance industry remains solvent.

"[The extension is needed] so that the insurance business cycle is not disturbed, the financial solvency of the insurance industry and its ability to respond to other catastrophes is shielded from terrorist attack and businesses remain confident that terrorism coverage will continue to be available and affordable," Degnan said.

Earlier this month, the US Treasury refused to rule out an extension to TRIA.

Some terrorism underwriters at Lloyd's want TRIA to be ended in order to generate more open market demand.