The US Treasury has announced that it is to extend the 'make available' provision of the Terrorism Risk Insurance Act (Tria) until the end of 2005.

The provision, which was due to expire at the end of 2004, requires insurers participating in the scheme to make terrorism coverage available under the same terms and conditions used for other risks.

Under the terms of Tria, the US government compensates insurers for 90% of their terrorism losses up to $100bn, dependent on insurers paying a deductible.

Lloyd's worldwide markets director Julian James said Lloyd's welcomed the development.