Tria Program Reauthorization Act of 2026: Importance and Implications

The insurance sector is advocating for the approval of the TRIA Program Reauthorization Act of 2026, aimed at extending a crucial federal initiative. Established in 2002 by the Terrorism Risk Insurance Act (TRIA), this program was designed to address insurers' hesitation to cover terrorism-related risks in commercial property and casualty policies post-9/11. The extension of this program is vital for maintaining stability and effective risk management within the industry.

Currently, the House Financial Services Committee is considering bill HR 7128, co-sponsored by Representatives Mike Flood and Andrew Garbarino. This bill aims to extend the terrorism insurance program by seven years, through to 2034. The last reauthorization occurred in 2019, and with the current program set to expire on December 31, 2027, timely action is essential for regulatory compliance and to avert potential uncertainties.

Sam Whitfield, senior vice president of federal government relations at the American Property Casualty Insurance Association (APCIA), commended the committee's prompt action, highlighting the importance of preventing uncertainty. Whitfield emphasized the significance of passing HR 7128, expressing the industry's commitment to collaborating with legislators. Past reauthorizations have successfully minimized federal risk exposure while ensuring carriers remain accountable for underwriting and claims management in the event of terrorism.

The reauthorization of the TRIA program is a top priority for the insurance industry, as it continues to navigate challenges in covering terrorism-related risks. This program mandates that insurers provide coverage for terrorism risks, with government intervention if certified terrorism events result in losses over $5 million per event and $200 million in industry losses. Ensuring the continuity of this program is essential for both regulatory stability and effective risk assessment.