President Obama Signs TRIA Bill
President Barack Obama has signed into law H.R. 26, The Terrorism Risk Insurance Program Reauthorization Act of 2015. "The bill signing is a momentous occasion for consumers, taxpayers, and our members,” said Nat Wienecke, senior vice president, federal government relations for PCI. “This long-term legislation will minimize market disruptions, maintain the availability and affordability of terrorism insurance for consumers and protect taxpayers. The overwhelming bipartisan votes in the House and Senate are a testament to the need for this critical program to preserve economic certainty today and provide for economic resiliency in the face of a catastrophic terrorist event. PCI applauds the President and Congress for making TRIA a top priority.
To view the text of the new TRIA bill, click here.
TRIA Expired on Dec. 31
The Terrorism Risk Insurance Act is critical to the stability of the American economy in the unstable world of terrorism. For 10 years, it has enabled insurers to make terrorism coverage available, especially in the real estate market and other markets that are critical to the economic recovery and job creation. However, TRIA expired on December 31, 2014. PCI supports continuing this program that only comes into play in case of a very large terrorism attack.
How TRIA Works
TRIA is a government reinsurance program that requires insurers to make terrorism coverage available and then provides a high-level federal backstop in the event of large catastrophic losses. The program is designed so that insurers – not taxpayers -- are likely to bear the brunt of most terrorism incidents. Only a terrorism incident of at least $100 million in insured losses would bring TRIA into play, and even then most insurers must first shoulder a very high level of losses themselves. This provides a measure of certainty regarding an insurers’ maximum loss exposure, while significantly limiting taxpayer exposure. read more >
PCI is highly engaged in this issue and serves as an excellent resource for information on the topic.