Design Highlights
- The House Financial Services Committee advanced H.R. 7128 to extend the Terrorism Risk Insurance Act (TRIA) until 2034, ensuring market stability.
- The bill raises the minimum loss threshold for insurers from $5 million to $25 million, reflecting current risk landscapes.
- TRIA’s extension is vital for billions in economic activity and thousands of jobs dependent on reliable insurance frameworks.
- Bipartisan support for the bill is crucial to prevent market disruptions and maintain insurance coverage for businesses.
- Timely updates from the Treasury post-terrorism events will enhance transparency and trust in the insurance market.
As the House Financial Services Committee gears up for yet another round of insurance drama, the TRIA Extension is back in the spotlight. The committee voted 51-2 to advance H.R. 7128, a bill that aims to extend the Terrorism Risk Insurance Act (TRIA) until 2034.
The TRIA Extension is back in focus, with a 51-2 vote advancing H.R. 7128 until 2034.
Why does this matter? Because without it, the commercial insurance market could be in for a major headache. Sponsored by Rep. Mike Flood and cosponsored by Rep. Andrew Garbarino, this bill is making waves, and most of them are good.
The Coalition to Insure Against Terrorism has been pushing hard for this extension. They don’t want to see businesses left in the lurch. And let’s face it, no one wants to be that person who has to explain to a lender why they can’t get terrorism coverage.
The National Association of Manufacturers (NAM) chimed in, thanking the committee for giving businesses a little certainty in a world full of unpredictability.
This new bill doesn’t just kick the can down the road; it raises the minimum loss threshold for insurers from $5 million to $25 million. That’s a big jump and reflects the reality of the current risk landscape.
Plus, the Treasury Secretary will have to publish a Federal Register notice within 30 days of determining a terrorism event. So, at least we’ll get some timely updates if something goes down.
TRIA, enacted after the 9/11 attacks, has been vital in stabilizing the insurance market. There hasn’t been a single event certified under TRIA since it began. Talk about a safety net that hasn’t had to catch anything! It’s a public-private partnership that shares the losses, ensuring that insurers have a backstop against catastrophic events. This federal funding is crucial for covering a percentage of losses after deductibles.
The bill comes at a time when the economy is still shaky. With billions in economic activity and thousands of jobs dependent on a stable insurance market, this move is about more than just politics.
It’s about ensuring that the U.S. economy doesn’t hit a wall because of an insurance crisis. Lenders have been requiring terrorism coverage since 9/11, but the market couldn’t keep up without TRIA. Business insurance protects companies from financial losses due to unforeseen events, making programs like TRIA essential for market stability.
In short, the TRIA extension is a big deal that could prevent chaos in the insurance market. The committee has acted decisively, and now the ball is in the House’s court.
As history shows, swift action is essential. With past extensions passing with overwhelming support, it’s time to keep the momentum going. Let’s hope they don’t drag their feet.
