Proponents Push for TRIA Renewal
The Terrorism Risk Insurance Act (TRIA) will likely be renewed, but sources say it is unclear when and in what form legislation will be introduced in Congress. The insurance sector wants to avoid another temporary lapse in the program, which expires at the end of 2020.
The program was renewed three times, most recently in Jan. 12, 2015, via the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). PIA took an active role in advocating the creation of TRIA in 2002, and has strongly supported all of its extensions by Congress. On June 18, 2019, PIA National submitted testimony to a hearing of the Senate Banking, Housing and Urban Affairs Committee supporting a long-term renewal of the program.
Aaron Davis, managing director for Aon Property Broking, says action on TRIA may have slipped down the federal legislative agenda into next year, possibly the second quarter. A report on the program by the Treasury’s advisory committee is due in June 2020. Risk managers continue to be supportive of the program.
James Lynch, chief actuary and senior vice president of research and education for the Insurance Information Institute, also says TRIA has helped foster a strong commercial marketplace. As the program faces renewal, the National Association of Insurance Commissioners (NAIC) and others are pushing for an extension of seven to 10 years.