Federal Support for Terrorism Insurance Extended Until 2034
A legislative proposal to extend federal support for the United States' commercial terrorism insurance market has progressed in the U.S. House, showcasing significant regulatory compliance requirements. The proposed TRIA Program Authorization Act of 2026 aims to extend the program until 2034, surpassing its current expiration in 2027. Notable changes include raising the minimum loss threshold for insurers from $5 million to $25 million and mandating that the Treasury Secretary announce progress within 30 days of initiating the terrorism determination process.
The House Financial Services Committee has approved the bill with overwhelming support, evidenced by a 51-2 vote. The American Property Casualty Insurance Association (APCIA) endorsed the committee's decision, emphasizing the backstop's importance in preventing market disruptions and maintaining essential economic protections against terrorism risks. "This backstop is essential for preventing market disruptions and maintaining critical economic protections against terrorist acts," stated David A. Sampson, President and CEO of the APCIA.
The Role and History of TRIA
The Terrorism Risk Insurance Act (TRIA) was established in 2002 following the 9/11 attacks, stabilizing the commercial terrorism insurance sector and addressing underwriting challenges. It created the Terrorism Risk Insurance Program, a federal safety net for certain property and casualty insurance losses due to terrorism, requiring insurers to include terrorism risk coverage. Despite no events meeting TRIA's certification criteria, the program's most recent reauthorization occurred in 2019, showcasing its vital role in risk management.
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This article is copyrighted material of Business Insurance Holdings, 2026.