Global Public Policy
This week the House Financial Services Committee passed a 7-year reauthorization of the Terrorism Risk Insurance Program (TRIA) on a 57-0 unanimous vote. In addition to continuing the program the legislation would require a study on the cyber terrorism market and expand an ongoing study to also determine the availability and affordability of TRIA coverage for places of worship.
TRIA was designed in the aftermath of 9/11 to support private sector participation in covering terrorism risk by providing a federal backstop in the case of a truly catastrophic terrorist event. To date, the program has functioned with no cost to the taxpayer. Should there be a catastrophic terrorism event, the Terrorism Risk Insurance Program has a recoupment provision that requires the federal government to recoup much, if not all, of what is paid out in the future.
Due to TRIA, it has been possible for businesses to purchase terrorism risk coverage continuously since its enactment in 2002. Its subsequent reauthorizations have helped to keep the U.S. terrorism insurance market stable, contributing to low costs and wide availability.
This week’s strong vote out of committee suggests that we may see further action on this legislation on the House floor by the end of the year. ICSC's office of Global Public Policy will continue to keep you updated on major developments as we work to get this important program reauthorized as quickly as possible.