Insurance Information Institute – Terrorism Risk Insurance Program – Renewed and Restructured – April 2015.

“Since its initial enactment in 2002 the terrorism risk insurance program has been revised and extended three times. The most recent extension—the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA)—ensures its continuation until December 31, 2020. On January 8, 2015, the U.S. Senate voted to reauthorize the federal terrorism risk insurance program by a 93-4 majority. Just the day before, the House of Representatives had voted 416-5 in favor of renewing the Terrorism Risk Insurance Act (TRIA) for six years. President Barack Obama signed the bill (H.R. 26) into law on January 12, 2015. Final passage of the bill by Congress came after the federal terrorism program was allowed to lapse on December 31, 2014. By all measures the terrorism risk insurance program remains an unqualified success—a rarity among federal programs—that has continuously achieved all its goals. The program not only succeeded in restoring stability to the country’s vital insurance and reinsurance markets in the wake of the unprecedented market dislocations associated with the September 11, 2001, terrorist attack, but it continues to deliver substantive, direct benefits to businesses, workers, consumers and the economy overall — all at little or no cost to taxpayers. However, the share of the loss insurers would pay in the event of a terrorist attack has increased significantly over the years, a trend that was underscored by the 2015 reauthorization. Insurers are also solely responsible for terrorism losses that impact non-TRIA lines, such as private passenger auto and homeowners insurance and group life. Less than half of the property/casualty insurance premiums are written in lines of insurance backstopped by TRIPRA.”