Insurance
Home›Insurance›Industry & Deals›Senate passes TRIA extension, awaiting House-Senate de…
Senate passes TRIA extension, awaiting House-Senate deal
The current TRIA program expires December 31, 2027, and the remaining threshold differences create uncertainty for brokers serving commercial real estate and construction accounts.
The US Senate has passed legislation to extend the Terrorism Risk Insurance Act, or TRIA, for seven years, but House and Senate versions still differ on key threshold terms before the bill can go to the president, Insurance Business reports.
TRIA, enacted in 2002 after the September 11 attacks, requires commercial property and casualty insurers to offer terrorism coverage. The federal government then provides partial reimbursement of insured losses from certified terrorist attacks once statutory thresholds and insurer deductibles are met, with insurers repaying that funding with interest over later years.
Insurance Business also notes that TRIA is set to expire on December 31, 2027, and the forward-looking nature of terrorism coverage means uncertainty from an unresolved reauthorization can hit brokers before any formal lapse. The outlet adds that commercial real estate and construction clients whose loan agreements require terrorism coverage are among the most exposed, because lenders are unlikely to accept even a temporary gap.
Insurance Business reports that Jimi Grande, senior vice president of federal and political affairs at the National Association of Mutual Insurance Companies, described the urgency as structural, given how coverage is used in financing arrangements.