WASHINGTON—Legislation to extend the Terrorism RiskInsurance Act for a decade has been introduced in the House.

Sponsored by Rep. Bennie Thompson (pictured at left), D-Miss,the ranking minority member of the House Homeland SecurityCommittee, the “Fostering Resilience to Terrorism Act of 2013”would also designate the U.S. Department of Homeland Security asthe lead agency in the certification process, switching controlfrom the Treasury Department, and adding a provision on informationsharing for insureds.

“The Boston Marathon bombings last month serve as a starkreminder that terrorism and mass violence remain both a homelandsecurity and economic threat,” Thompson said in astatement. ”If TRIA is allowed to expire next year, there maybe fewer insurers offering terrorism insurance and pricespotentially could increase. By extending this program for 10 years,we will ensure much-needed stability and predictability for thebusiness community.”

TRIA was first adopted in 2002 in response to the terroristattacks on 9-11. It has previously been extended but is set toexpire again next year.

The bill was introduced the same day Evan Greenberg, CEO of AceLtd., said at a NAIC international regulatory conference inWashington that if the terrorism risk reinsurance program is notextended, ”you won't see terrorism insurance widelyavailable.”

Without TRIA, Greenberg (pictured at right) said, “We wouldn'tmake terrorism insurance available.”

“If TRIA is cancelled, I am not going to assume the tail risk,”he said, referring to the quid pro quo of insurers making terrorismcoverage available in exchange for the government taking the tailrisk. “TRIA has done its job…TRIA has worked and there has been areal wisdom to it,” Greenberg said.

TRIA, he noted, just makes the process of terrorism coveragemore organized and efficient, adding, “On the Ace balance sheet,there is certainty of exposure, under TRIA.”

Bipartisan legislation introduced in the House in February, “TheTRIA Reauthorization Act of 2013,” H.R. 508, would extend theprogram for 5 years. The lead sponsor is Rep. Michael Grimm,R-N.Y.”

TRIA “continues to protect our nation's economy,” said Leigh AnnPusey, president and CEO of the American Insurance Association, ina statement.

In the years since September 11, 2001, “the program has providedmuch needed market stability and predictability for recovery afteran event while limiting the exposure of taxpayers to losses,” Puseysaid.

“This public-private shared loss partnership frees up capitalfor business expansion and has helped assure businesses that therecan be orderly recovery following a terrorist event without furthereconomic disruption,” she added.