Insurers Look to TRIA Renewal
U.S. insurers are pushing for an extension of the federal terrorism risk insurance program, which expires at the end of 2020, to prevent a possible gap that will leave clients scrambling for alternate coverage. It has never been triggered, but insurers want to see the program renewed before its expiration.
The Terrorism Risk Insurance Act (TRIA) was signed into law by President George W. Bush in November 2002. PIA was active in advocating for the initial passage of TRIA in 2002, and successfully worked with Congress to secure a long-term reauthorization of TRIA in early 2015.
Memories of a brief lapse in the program after 2014, when some conservative lawmakers called for the private sector to pay more terror-related losses before federal government funding kicks in, are still fresh to the industry. Many clients in high-risk areas, such as New York, are already looking into buying two-year standalone policies, which will insure them through 2021, regardless of what happens with the government program.