According to the Insurance InformationInstitute: "Besides the tragic loss of human life, the economiccosts of terrorism are immense: increased security andanti-terrorist expenditures, consumer and investor uncertainty,supply chain and business continuity disruptions, industryretrenchment – all and more can have negative impacts on economicgrowth." (Photo: ©Richard B. Levine/ALM Media archives)

A bipartisan effort moved forward this week to reauthorizethe Terrorism Risk InsuranceAct (TRIA) through 2027.

The law, which passed after the 9/11 attacks, creates a federalbackstop for insurance claims that arise out of such acts. It iscurrently set to expire in December 2020.

In addition to the marked loss of life, the 9/11 attacksresulted in roughly $45 billion in insured losses, according to the Insurance InformationInstitute. Experts say the TRIA is needed to "protect thecountry's national economic security from terrorism."

In the immediate aftermath of 9/11, manyconstruction projects were delayed or canceled because terrorisminsurance became challenging to acquire.

Senator Thom Tillis (R-N.C.) and Senator Tina Smith (D-Minn.)introduced the Terrorism Risk Insurance Program Reauthorization Actof 2019 (H.R. 4634) earlier this year.

"This legislation is vitally important to maintaining thestrength of the commercial property-casualty insurance market andwould provide much-needed stability to the U.S economy," CharlesSymington, Big "I" senior vice president of external, industry andgovernment affairs, said in a prepared statement when thereauthorization bill was introduced to Congress. TheBig "I" is the nation's oldest and largest national associationof independent insurance agents and brokers, representing more than25,000 agency locations united under the Trusted Choice brand.

On Monday (Nov. 18, 2019), the U.S. House ofRepresentatives passed H.R. 4634. with a vote of 385 to22.

"The Big 'I' applauds the House of Representatives for takingaction to extend the program on a long-term basis well before thescheduled expiration," Symington said in response to the latestlegislative development. "The Big 'I' especially wants to thankChairwoman Maxine Waters (D-Calif.) and Ranking Member PatrickMcHenry (R-N.C.) for recognizing the critical role that the programplays in the U.S. economy and building a huge bipartisan consensusto reauthorize the program."

The NationalAssociation of Mutual Insurance Companies also sounded offMonday.

"By passing an extension of the Terrorism Risk Insurance Act,the House has made clear that the U.S. is committed to doing whatis needed to persevere in the face of the threat of terrorism,"said Jimi Grande, senior vice president of government affairs forNAMIC. "NAMIC applauds the House for coming together to show itsoverwhelming support for TRIA and protecting theU.S. economy."

The NationalAssociation of Professional Insurance Agents (PIANational) also praised the House bipartisan vote.

"PIA strongly supports this bill, which extendsthe TRIA program for seven years while onlymaking minimal changes to it, a key request PIA National has beenpushing for in our advocacy," said Jon Gentile, PIA National vicepresident of government relations. "The House passageof TRIA over a year in advance of its expirationis a breath of fresh air and will be welcomed by policyholders andthe market."

See also:

• TRIA extension bill passes House Financial ServicesCommittee with 57-0 vote
• Political risk insurance coverage: Options andopportunities
• How employers now prepare for the worst casescenario