Washington, DC – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), issued the following statement in response to the Senate passing the Terrorism Risk Reauthorization Act of 2015 (H.R. 26) by a vote of 93 to 4.
“The Senate’s overwhelming bipartisan vote today following yesterday’s nearly unanimous House vote and the anticipated swift signing of H.R. 26 by the President assures the markets that the terrorism risk insurance program will remain in place protecting our nation’s economy, policyholders and taxpayers. Congress’ timely reauthorization of TRIA will preserve a well-functioning private terrorism insurance marketplace.
“As with previous TRIA reauthorizations, the primary responsibility for financial recovery is placed on the private sector in all but the most catastrophic of events. TRIA provides policyholders and businesses the certainty they need to operate and grow our nation’s economy. We thank the Congress for its steadfast support and hard work to reauthorize TRIA and urge President Obama to quickly sign the legislation into law.”
The legislation, which passed the House on January 7 by a vote of 416 to 5, now heads to the President’s desk for enactment. Under the six-year extension in the bill, starting in 2016, there will be phased-in increases to the program’s trigger (raising it from $100 million to $200 million in annual aggregate insured losses) and the insurer co-share (raising it from 15 percent to 20 percent). In addition, the bill phases in an increase in the aggregate amount of insured terrorism losses required to be borne by the private sector from the current $27.5 billion to $37.5 billion. Any use of taxpayer dollars to fund those losses would be recouped post-event.