The National Association of Mutual Insurance Companies hailed today’s House passage of legislation reauthorizing the Terrorism Risk Insurance Program for seven years as part of broader spending legislation.
“Today’s vote will not only help protect our economy from the threat of terrorism, but also help communities across America continue to grow and flourish,” said Jimi Grande, senior vice president of government affairs for NAMIC. “The Terrorism Risk Insurance Program helped us rebuild in the wake of one of our nation’s darkest days, and it continues to provide much-needed protections for the U.S. economy.”
Congress passed the Terrorism Risk Insurance Act establishing the program in the wake of the 9/11 attacks to address the significant challenges of underwriting terrorism insurance. The program requires insurers to make affordable terrorism coverage available, and, in exchange, allows them to spread losses throughout the private sector and over time following an attack. If losses exceed certain thresholds, the federal government provides funds upfront that are repaid with interest by insurers. To date, studies of the terrorism insurance marketplace have found coverage to be widely available and affordable even in high-risk areas and no money has been paid out through the program.
“Terrorism is unlike any other risk,” Grande said. “While terrorism can cause the same kind of devastation as natural disasters, hurricanes don’t seek out the most vulnerable targets, and wildfires don’t look for ways to get around our defenses. The threat of terrorism may never be eliminated entirely, but the TRIA program has ensured that our communities do not wither and die in fear. Instead, the virtual forest of construction cranes in cities and towns demonstrates the confidence Americans have to continue building for the future.”
Extending the TRIA program was a top legislative priority for NAMIC in 2019 to ensure stability in the marketplace heading into what would have been the program’s final year. The House Financial Services Committee passed the TRIA extension unanimously in October, followed by full House passage soon after by a vote of 385-22. The Senate Banking Committee passed the legislation Nov. 20 by a unanimous vote and is expected to approve the funding legislation including the extension.
“A swift and early reauthorization of the Terrorism Risk Insurance Program is an enormous accomplishment for a Congress that often seems more interested in partisan bickering than solving the problems facing our country,” Grande said. “NAMIC is grateful that congressional leadership and lawmakers from both sides of the aisle were able to put aside their differences to reauthorize this vital program.”
Article Posted: 12.17.19
Last Updated: 08.21.20