TRIA reauthorization bill introduced in the Senate

This week Sen. Thom Tillis (R-NC) and 15 original cosponsors introduced the Terrorism Risk Insurance Program Reauthorization Act of 2019 (S. 2877), a bipartisan seven-year TRIA reauthorization bill that would extend the program until December 31, 2027.

The bill preserves taxpayer reforms included in the Terrorism Risk Insurance Program Reauthorization Act of 2015. It also:

• Aligns the timing of mandatory recoupment from private insurers by the federal government in the event of an act of terrorism covered by the Terrorism Risk Insurance Program with the seven-year extension of the program;
• Directs the Treasury Department in its biennial report on the Terrorism Risk Insurance Program and its effectiveness to include an evaluation of the availability and affordability of terrorism risk insurance, including specifically for places of worship; and
• Directs the Government Accountability Office to analyze and address, and report on, the vulnerabilities and potential costs of cyber terrorism, adequacy of coverage under the program, and to make recommendations for future legislative changes to address evolving cyber terrorism risks.

Senate Banking Committee Chairman Mike Crapo (R-ID) has announced that the committee will vote on the bill next week, moving the legislation forward through the legislative process and providing assurance to the markets that the federal back-stop on terrorism risk will be allowed to continue. 

The bill is similar to H.R. 4643, which was passed out of the House Financial Services Committee by a vote of 57 to 0. The full House is likely to vote on the measure next week.

Access to terrorism risk insurance is an essential part of most commercial real estate risk management programs and required by most lenders. ICSC continues to work with other stakeholders through the Coalition to Insure Against Terrorism (CIAT) and advocate for a timely reauthorization of this program.