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Senate passes bill to extend federal terrorism insurance backstop
The legislation would push the terrorism risk insurance program’s end date to 2034, replacing an expiration set for end of 2027.
The U.S. Senate late Sept. 28 passed, by unanimous consent, legislation to reauthorize the federal terrorism insurance backstop, moving the Terrorism Risk Insurance Program Reauthorization Act of 2026, or S. 4395, to extend the program through 2034, instead of its scheduled expiration at the end of 2027.
Insurance Journal reports the measure builds on TRIA, the public-private partnership that was launched under the Terrorism Risk Insurance Act after terrorism coverage largely disappeared following the Sept. 11 attacks.
According to Insurance Journal, TRIA allows privately insured terrorism risk to be backstopped by the federal government, with coverage triggered when a terrorism act is certified by the Secretary of the Treasury and when losses reach a threshold, and it includes insurer deductibles and copays.
The outlet also notes the Senate bill differs from a House-passed version, meaning lawmakers will need to compromise or adopt one version, and it adds that TRIA has never been triggered by a certified terrorism event.