House FSC Passes TRIA Renewal 57-0
In a demonstration of overwhelming support, the House Financial Services Committee passed a bipartisan bill that extends the Terrorism Risk Insurance Program (TRIP) for seven years. The committee vote was 57-0.
“PIA commends Chairwoman Maxine Waters and the House Financial Services Committee for unanimously passing a common-sense, long-term extension of TRIP,” said PIA National Vice President of Government Relations Jon Gentile. “We are pleased that this bill passed the committee over a year before the current law is set to expire. A timely reauthorization well in advance of expiration is important to provide stability to policyholders and the markets.”
The bill provides a seven-year extension of the insurance backstop program and makes minimal changes to it. PIA National has been advocating for this kind of straightforward reauthorization of TRIP. PIA National also supports a substantive change to the bill, the creation of a mandate for a study to be conducted on cyber terrorism, including whether the current risk-share system is appropriate for a cyber terrorism attack, and whether cyber risk coverage can be adequately priced by the private market.
“This bill ensures that terrorism risk insurance coverage will continue to be available and affordable over the long term. We urge quick action by the full House and then the Senate,” said Lauren G. Pachman, Esq., PIA National’s counsel and Director of Regulatory Affairs.