HNI Account Executive
The federal Terrorism Risk Insurance Act (TRIA) passed the U.S. Senate on Thursday, Jan. 8, and the legislation likely will be passed into law by President Obama in the coming days.
This means that the federal reinsurance backstop will be retroactively restored for policyholders and the insurance market in the event of a catastrophic terrorist act on U.S. soil. The TRIA program, when passed, will expire at the end of 2020.
The U.S. House already had passed its version of TRIA.
Along with six-year reauthorization, the legislation, once passed, also will:
- Raise the required total losses before TRIA kicks in to $200 million (from $100 million) over five years, starting in 2016
- Increase the mandatory recoupment to $37.5 billion (from $27.5 billion) over five years, starting in 2016
- Raise the private industry recoupment total to 140 percent of covered losses (from 133 percent of covered losses)