NAMIC: Senate Passage Shows Urgency of TRIA Extension

Unanimous passage of legislation extending the Terrorism Risk Insurance Act by the U.S. Senate underscores the importance of ensuring that coverage for losses due to terrorism remains available.

“Construction and development across the country depend on having coverage against terrorism available to secure financing and create jobs,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “By moving swiftly and decisively to extend TRIA and the partnership it created, the Senate is making sure those projects, and our economy, will have the protection they need.”

Established in 2002 when lenders began mandating terrorism coverage in the wake of the Sept. 11 attacks, the TRIA program requires insurance companies to offer terrorism coverage. In exchange, in the event of a terrorist attack, the federal government would provide up-front funding for a percentage of related losses. Insurers would pay an immediate deductible and subsequently repay the government for the remaining losses, with interest, over several years. As of today, the program has never been triggered.

“It’s an unfortunate reality that TRIA is as necessary today as it was when was first enacted,” Grande said. “Terrorism is an unknowable threat. Unlike natural disasters, terrorists will seek out vulnerable areas and adapt their plans to counter our defenses. For insurers the challenge is compounded by the fact that any relevant data on attempted attacks is unavailable for national security reasons.”

NAMIC has championed the TRIA program since its inception and has been pressing for this long-term TRIA for more than a year. The association’s former board chair, Elizabeth Heck, testified before a House committee in 2025 on the need for a swift, clean, and long-term extension for the program. Heck, the president and CEO of Greater New York Insurance Companies, explained to lawmakers that given the forward-looking nature of insurance contracts, Congress must act swiftly to avoid creating uncertainty in the marketplace. The House passed its own reauthorization bill in June by an overwhelming 373-15 vote.

“With each having recognized the need for TRIA, now is the time for the House and senate to move quickly, iron out the details and send an extension to the president,” Grande said. “Insurance coverage is sold on a forward-lowing basis, so the potential for disruption in the marketplace will soon get worse. Every major construction project of the past quarter century has depended on TRIA in some way, and all at no expense to the taxpayer. Congress should make extending the program a top priority when they get back to D.C.”