Last week, Representative Bennie Thompson, a Democrat Congressman from Mississippi, introduced the Fostering Resilience to Terrorism Act of 2013, which would extend the Terrorism Risk Insurance Act by ten years. TRIA, which is set to expire at the end of 2014, was the subject of another proposed extension earlier this year but that proposal merely extended the program five years.
In addition to extending the Program by ten years, the Fostering Resilience to Terrorism Act of 2013 would also change the certification process required for an act to trigger the federal backstop from the Department of Treasury to the Secretary of Homeland Security. It also contains a provision implementing the sharing of homeland security information and information on best practices to foster resilience to terrorist attacks by the Secretary of Homeland Security to insureds under the Program.
Rep. Thompson, the Ranking Democratic Member of the House Homeland Security Committee, stated the following when introducing the bill:
The Boston Marathon bombings last month serve as a stark reminder that terrorism and mass violence remain both a homeland security and economic threat. If TRIA is allowed to expire next year, there may be fewer insurers offering terrorism insurance and prices potentially could increase. By extending this program for 10 years, we will ensure much-needed stability and predictability for the business community.
The American Insurance Association has already issued its support for Rep. Thompson’s bill, which you can read here.
Click here to read Fostering Resilience to Terrorism Act of 2013.
We will continue to monitor developments related to TRIA and the possible extension of the Terrorism Risk Insurance Program.
If you have any questions, please contact Brian Green or Jack Dearie.