The leadership of the American Property Casualty Insurance Association (APCIA) recently commended the Senate Banking Committee for holding today’s hearing on the reauthorization of the Terrorism Risk Insurance Program.
The Terrorism Risk Insurance Program was reauthorized in 2015 by President Barack Obama and was extended through Dec. 31, 2020. It was initiated on the idea that sustaining a viable private market for terrorism insurance depends on a federal backstop.
“APCIA commends Chairman Crapo and members of the Senate Banking Committee for holding today’s hearing. APCIA strongly supports reauthorization of the current TRIA program as quickly as possible, for as long a duration as possible, and without changes to the current thresholds,” Nat Wienecke, senior vice president of federal government relations at APCIA, said.
Wienecke said that although the program does not expire until the end of 2020, it is imperative that TRIA is reauthorized this year.
“This fall, insurers will begin to negotiate new policies with durations running past TRIA’s expiration and have provisions ending terrorism coverage should TRIA lapse. Reauthorizing TRIA as soon as possible also will avoid disruptions and confusion in the marketplace for both insurers and their consumers,” Wienecke said. “APCIA will continue to work with Congress on a long-term reauthorization of TRIA.”