TRIA Reauthorization Update – Latest Developments
The Financial Services Committee (FSC) of the House of Representatives recently held a hearing on the reauthorization of the Terrorism Risk Insurance Act, also known as TRIA, which expires on December 31, 2020. This risk-financing mechanism has proven to be very useful — providing substantial market and economic stability through a treasury-based risk transfer backstop for an industry with limited ability to accurately predict losses. The Committee passed TRIA, by a vote of 57-0. Now comes the critical next steps to move this through the House, Senate and finally, to the president’s desk for a signature of approval. It may seem like there’s plenty of time for this process, but the nature of renewals and market perceptions suggest that time is of the essence. Not surprisingly, the immediate aftermath of the vote reflected consistent praise from a wide spectrum of players in the commercial and personal lines industry.
The 2015 TRIA renewal was delayed two weeks past expiration before it was signed by former President, Barack Obama. After months of procrastination, Congress adjourned for the holidays, leaving the…
