Extension of Terrorism Risk Insurance Program Passed by House

The U.S. House of Representatives has successfully passed a bill to extend the Terrorism Risk Insurance Program, a pivotal government-backed initiative aimed at protecting insurers against terrorism-related losses. Known as the TRIA Program Reauthorization Act of 2026 (H.R. 7128), the legislation garnered substantial support with a vote of 373 to 15, promising continued security for the insurance sector.

Introduced by Mike Flood, Chair of the Subcommittee on Housing and Insurance, the bill seeks to reauthorize the program, originally established in 2002 in the wake of September 11, through 2034. This reauthorization is pivotal for providing insurers with a reliable backstop against terrorism risk, significantly contributing to market stability and fostering underwriting confidence.

Under the new legislation, the loss certification threshold for a terrorist event will increase from $5 million to $10 million starting in 2029. Furthermore, the Treasury Department will be required to follow enhanced notice requirements during the certification process, as detailed on Congress.gov. The commercial property and casualty insurance sector has shown strong support, with industry leaders like Joe Peiser, CEO of Risk Capital at Aon, praising TRIA for making insurance coverage accessible and affordable, thus encouraging investments in crucial economic sectors.

The American Property Casualty Insurance Association (APCIA) has also expressed approval of the bill's progress and advocates for continued collaboration between the House and Senate for its swift enactment. Sam Whitfield, senior vice president at APCIA, emphasized the necessity of the bill's prompt approval to maintain industry stability. The continuation of TRIA is viewed as essential by industry stakeholders, supporting confidence and growth in the broader economy amidst evolving threat landscapes.