Senate Bipartisan Terrorism Insurance Bill Progresses
The Big “I” praised the committee’s bipartisan action and will continue working with Congress.
The U.S. Senate Committee on Banking reported S. 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014 by Sens. Chuck Schumer (D-N.Y.) and Dean Heller (R-Nev.), to the full Senate for consideration by a unanimous 22–0 vote in early June.
The Big “I” praised the committee’s bipartisan action and will continue working with Congress and its industry partners on both the TRIA reauthorization and NARAB II as they move through the legislative process.
S. 2244 was introduced in April and will address TRIA’s upcoming expiration at the end of 2014. The legislation would extend the Terrorism Risk Insurance Act (TRIA) program for seven years. The bill also makes some changes to its mandatory recoupment amount ($27.5 billion to $37.5 billion) and increases the co-pay for private industry's insured losses from 15% to 20%.
The effort has the strong support of the Big “I” and many in the industry because it is critically important that agents and brokers have the ability to provide protection to their customers in the form of terrorism insurance, and the current TRIA program has worked well to ensure the availability of this coverage. Initially authorized in the wake of the terrorist attacks of 9/11 and the ensuing turmoil in the commercial property-casualty insurance markets, the TRIA program has since been reauthorized in 2005 and 2007 in response to continuing problems with underwriting this unique risk. Each of the previous reauthorizations has included reforms to the program. The Big “I” expects this year’s reauthorization to once again include additional reforms to increase private market participation. Also expected to be added to the TRIA legislation before Senate floor consideration is the NARAB II bill to streamline agent licensing. The House Financial Services Committee is reportedly scheduled to release their version of a TRIA reauthorization in the coming weeks.