The Terrorism Risk Insurance Program is expected to be extended for seven years as is it part of a government funding package that is anticipated to pass in Congress this week.
The Terrorism Risk Insurance Program was established following the terrorist attacks on Sept. 11, 2001. Through a public/private partnership, the program allows the federal government and the insurance industry to share losses in the event of a major terrorist attack. It ensures that adequate resources are available for businesses to recover and rebuild if they are the victims of a terrorist attack. All property and casualty insurers in the U.S. are required to make terrorism coverage available. It was set to expire in 2020.
This new bill – sponsored by Sens. Thom Tillis (R-NC) and Tina Smith (D-MN) – reauthorizes the program through Dec. 31, 2027. It directs the Treasury Department to report on the effectiveness, availability, and affordability of terrorism risk insurance, and it directs the Government Accountability Office to analyze the vulnerabilities and potential costs of cyber terrorism and make recommendations for future legislative changes to address evolving cyber terrorism risks.
“The Terrorism Risk Insurance Program is an important program that protects North Carolina’s economy and provides peace of mind to the private sector by providing insurance protections at no cost to taxpayers,” Tillis said. “I am proud to see my bipartisan legislation to extend this program will be signed into law so major events like the 2020 RNC Convention in Charlotte and American businesses can be protected and continue to create jobs.”
The bill is supported by the U.S. Chamber of Commerce, the Coalition to Insure Against Terrorism, the Reinsurance Association of America, Prudential, the National Association of Insurance Commissioners, the National Association of Realtors, the American Bankers Association, and the American Property Casualty Insurance Association.
“I’ve been focused on working with both parties to get things done to support jobs and economic growth in Minnesota. Congress is an institution that rarely acts without a deadline, so I’m glad to see my bipartisan measure on the path to being signed into law more than a year before Terrorism Risk Insurance Program is scheduled to expire,” Smith said. “The TRIA bill supports vital Minnesota institutions because having access to affordable insurance for terrorism-related risks makes it possible for businesses to be able to grow and create jobs. The Terrorism Risk Insurance Program needs to be extended, and successfully including it in this legislative package shows we can work together to do that.”