This week, the Big “I” joined a number of organizations in sending a letter to Senate leaders urging them to pass S. 2877, the “Terrorism Risk Insurance Program Reauthorization Act of 2019.”
S.2877 is bipartisan legislation that would extend the Terrorism Risk Insurance Act (TRIA) for seven years, allowing the program to continue to provide vital economic protections against acts of terrorism. The legislation recently passed out of the U.S. Senate Committee on Banking, Housing, and Urban Affairs by voice vote on a bipartisan basis.
The U.S. House of Representatives passed H.R. 4634, the “Terrorism Risk Insurance Program Reauthorization Act of 2019” last month. The legislation passed the House by a vote of 385-22 with strong Big “I” support and is nearly identical to S. 2877.
Since its initial enactment in 2002, the Terrorism Risk Insurance Program (TRIP) has undergone three additional reauthorizations—in 2005, 2007 and 2015—with many reforms to protect taxpayers and increase private sector involvement.
The Big “I” believes the significant reforms included in the 2015 reauthorization strike the right balance between ensuring that the program remains stable and strong, while also protecting the taxpayer. Additional substantive reforms are unnecessary and could significantly restrict the efficacy of the program. There is still a real need for the program, as the threat of terrorism is ever-present and the unique nature of this risk has not changed. The current authorization of the program is due to expire on Dec. 31, 2020.
Reauthorizing TRIA is vitally important to maintaining the stability of the commercial property-casualty insurance market. The Big “I” is encouraged with the recent activity in Congress and will continue to advocate for the program to be reauthorized well in advance of its scheduled expiration.
Wyatt Stewart is Big “I” senior director of federal government affairs.