Insurance industry groups and regulators are asking Congress to extend the Terrorism Risk Insurance Act (TRIA) well beyond its current deadline in 2027. They warn that without a long-term renewal, the insurance market and the broader economy could face serious problems.
TRIA was created after the 9/11 attacks when insurers struggled to provide terrorism coverage on their own. Since then, the federal government has acted as a backstop, helping insurers manage large losses from terrorism events. Currently, TRIA is set to expire at the end of 2027, following a seven-year extension approved in 2019.
This week, officials from the National Association of Insurance Commissioners (NAIC) and other trade groups spoke before the US House Subcommittee on Housing and Insurance, urging lawmakers to approve a seven- to 10-year extension of the program. Andrew Mais, the Connecticut insurance commissioner and former NAIC president, stressed the importance of the government’s role. He said private insurers would likely leave the market if TRIA isn’t renewed, making terrorism coverage hard to find.
“TRIA keeps the insurance sector steady, and that steadiness benefits businesses and communities across the country,” Mais said. He highlighted how consumers and businesses depend on insurance markets that can rely on this federal safety net.
The American Property Casualty Insurance Association also backed TRIA, pointing out that it helps the economy stay strong while costing taxpayers very little. Elizabeth Heck, former chairperson of the National Association of Mutual Insurance Companies (NAMIC), said the program helps keep insurance markets competitive and premiums affordable.
Heck noted that although the program has not faced a major test since it began, it has supported much construction and economic growth nationwide. NAMIC supports renewing TRIA for another seven to 10 years, keeping its current structure intact.
Under TRIA, insurers offer terrorism coverage at reasonable prices because they can spread losses over time and get federal funds to cover some of the costs, after paying deductibles and interest. This arrangement encourages more insurers to participate, which keeps the market competitive.
Industry experts are hopeful Congress will act soon to avoid uncertainty that could disrupt terrorism insurance coverage. With the 2027 expiration date approaching, they want a long-term solution in place to keep insurance available and affordable for all.