Industry Issues | Terrorism Insurance | U.S. Terrorist Activity

Terrorism Insurance

Senate Passes TRIA Bill

By a bipartisan vote of 93-4, the Senate passed H.R. 26, the Terrorism Risk Insurance Program Reauthorization Act of 2015. This legislation will reauthorize the Terrorism Risk Insurance Act and enact the National Association of Registered Agents and Brokers Act of 2015 (NARAB II). The legislation passed the House on January 7, 2015. The bill is now on its way to President Obama for his signature, as one of the first laws enacted by the 114th Congress. 

To view the text of the new TRIA bill, click here.

TRIA Expired on Dec. 31
The Terrorism Risk Insurance Act is critical to the stability of the American economy in the unstable world of terrorism. For 10 years, it has enabled insurers to make terrorism coverage available, especially in the real estate market and other markets that are critical to the economic recovery and job creation. However, TRIA expired on December 31, 2014. PCI supports continuing this program that only comes into play in case of a very large terrorism attack.

How TRIA Works
TRIA is a government reinsurance program that requires insurers to make terrorism coverage available and then provides a high-level federal backstop in the event of large catastrophic losses. The program is designed so that insurers – not taxpayers -- are likely to bear the brunt of most terrorism incidents. Only a terrorism incident of at least $100 million in insured losses would bring TRIA into play, and even then most insurers must first shoulder a very high level of losses themselves. This provides a measure of certainty regarding an insurers’ maximum loss exposure, while significantly limiting taxpayer exposure. read more >

PCI is highly engaged in this issue and serves as an excellent resource for information on the topic.


Learn More

What People Are Saying About the Urgent Need for Congress to Reauthorize TRIA
 
  See How Your State is Impacted by TRIA

PCI Asks Congress to Keep Ninety-eight Percent of Insurers in the Marketplace

Terrorism Risk Insurance Act Current Law

Map of U.S. Terrorist Activity

TRIA Backgrounder: How it Works and its Impact

Terrorism Insurance: PCI Policy Position

Terrorism Insurance: Consumers Benefit from a Market-Based Approach to Terrorism Insurance


PCI Resources

What They're Saying (Infographic)

Joint TRIA Letter to the House Leadership | July 8, 2014

Joint TRIA Letter to the Senate Leadership | July 8, 2014

Perceptions About the Potential Expiration of the Terrorism Risk Insurance Act | Ponemon Institute, April 2014

State TRIA Fact Sheets

Cyber Catastrophes: Understanding the Risk and Exposure | Ponemon Institute, March 2014

PCI Comments on TRIA to President’s Working Group on Financial Markets | September 2013

PCI Research Initiative: Terrorism Risk Insurance | Presentation by GS Strategy Group, January 2013


Other Resources

TRIA After 2014, Examining Risk Sharing Under Current and Alternative Designs
Wharton Risk Management Center, July 22, 2014

Future of TRIPRA Remains Uncertain, Rating Pressure Intensifies
AM Best Company, October 9, 2013

Federal Terrorism Backstop Bills Would Place Greater Onus on Insurers
AM Best Company, July 21, 2014

The Impact on Workers Compensation Insurance Markets of Allowing the Terrorism Risk Insurance Act to Expire
Report by RAND Center for Catastrophic Risk Management and Compensation, May 2014

The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire
Report by RAND Center for Catastrophic Risk Management and Compensation, April 2014

The Long-term Availability and Affordability of Insurance for Terrorism Risk
Report by the President’s Working Group on Financial Markets, April 2014

Marsh 2014 Terrorism Risk Insurance Report
Report by Marsh, a unit of Marsh & McLennan Companies, April 2014

University of Texas Sends Letter to Chairman Hensarling

National Security Perspectives on Terrorism Risk Insurance in the United States
Report by RAND Center for Catastrophic Risk Management and Compensation, March 2014

Marsh 2013 Terrorism Risk Insurance Report
Report by Marsh, a unit of Marsh & McLennan Companies, April 2013

Terrorism Risk Insurance: Issue Analysis and Overview of Current Program
Report by the Congressional Research Service, February 2013

Terrorism: Terror Market Continues to Provide Abundant Cover
Report by Guy Carpenter, the reinsurance brokerage unit of Marsh & McLennan Companies, August 2011

Market Conditions for Terrorism Risk Insurance 2010
Report by the President’s Working Group on Financial Markets, January 2010

Terrorism Risk Insurance
Report by the President’s Working Group on Financial Markets, September 2006

The Federal Role in Terrorism Insurance Evaluating Alternatives in an Uncertain World
Report by RAND Center for Terrorism Risk Management Policy, September 2007


Press Releases

PCI Applauds Senate for Passing a Long-Term TRIA Reauthorization

PCI Applauds House for Passing a Long-Term TRIA Reauthorization

PCI Urges the House to Pass Legislation to Reauthorize TRIA

PCI Reacts to Senate Failing to Vote on TRIA

PCI Applauds the House for Passing a Long-Term TRIA Reauthorization and NARAB II

PCI Commends Senate Passage of Terrorism Risk Insurance Program Reauthorization Act of 2014

PCI Urges the Senate to Support the Terrorism Risk Insurance Program Reauthorization Act of 2014

PCI Optimistic After House Action on TRIA

PCI Encouraged by the Introduction of House TRIA Legislation

PCI Urges Senate Banking Committee to Pass TRIA Reauthorization

PCI Applauds RAND Study on the Impact on Workers’ Compensation if TRIA Expires

PCI Statement on PWG TRIA Report

PCI Reacts to Senate TRIA Bill

PCI Applauds RAND Study on the Possible Impact of TRIA’s Expiration on Federal Spending

PCI Applauds RAND Study on TRIA’s Importance to National Security

South Dakota Legislature Urges Congress to Reauthorize TRIA

PCI Urges TRIA Reauthorization

PCI Issues Statement on Housing and Insurance Subcommittee Hearing on Terrorism Risk Insurance

PCI Issues Statement on Senate Banking Committee Hearing on Terrorism Risk Insurance

PCI Issues Statement at Committee Hearing on Terrorism Risk Insurance Act

PCI Provides Comments to PWG on TRIA

PWG Requests Comments on TRIA

PCI Applauds NCOIL Action on TRIA

New Yorkers Make TRIA Extension a High Priority; PCI Joins in Call for Congressional Action