Despite strong encouragement from the insurance industry and business groups around the country, the U.S. Senate has adjourned for the year without passing the Terrorism Risk Insurance Program Reauthorization Act of 2014 (TRIPRA).

The Senate's action came despite strong bipartisan support, and after the U.S. House of Representatives had passed the legislation by a vote of 417–7. The bill will now have to be reintroduced into both houses of Congress in January as entirely new legislation.

TRIPRA, a successor to the Terrorism Risk Insurance Act (TRIA), is seen as vitally important in providing coverage for damage and destruction as a result of terrorist incidents like the 9/11 attacks on the World Trade Center. TRIA was passed in 2002 as a response to those attacks, making the federal government the insurer of last resort for large public venues, like airports and sports stadiums, or major infrastructure, like the Hoover Dam or New York City's subway system.

There was some talk that the 2015 Super Bowl Game might be in jeopardy if the insurance program wasn't renewed. The National Football League has since said that the game will be played, regardless.

Understandably, the reaction among industry groups is one of shock, dismay and disappointment. Here's a roundup of their statements thus far.

National Association of Professional Insurance Agents (PIA)

PIA is "shocked and dismayed" that Congress would adjourn without doing its job by passing a long-term renewal of the Terrorism Risk Insurance Act (TRIA), especially at a time of increasing terrorist threats. "Disagreement won the day and politics took precedence over protecting the American people," said PIA National Executive Vice President & CEO Mike Becker. "If TRIA is allowed to lapse it will not only be devastating to the American economy, it will also put our national security at risk."

Independent Insurance Agents & Brokers of America (IIABA or the Big "I")

Robert Rusbuldt, president and CEO of the Independent Insurance Agents & Brokers of America (IIABA, or the Big "I"), said, "With more than a week before Christmas, we are profoundly disappointed in the Senate's premature decision to leave town late last night without extending the Terrorism Risk Insurance Act which provides vital protection for the U.S. economy. The TRIA legislation had overwhelming bipartisan support in both chambers of Congress along with strong support from the White House. This inaction is particularly galling in light of the 417–7 vote in the House last week on this exact same legislation."

Insurance Information Institute

"A major terrorist attack occurring without a federal Terrorism Risk Insurance Act (TRIA) law on the books will be far more disruptive to the U.S. economy than one where TRIA is in place," said Dr. Robert Hartwig, president of the I.I.I. and an economist. "Terrorism insurance policies are going to lapse in 2015, and insurers will be under no obligation to renew them, adversely impacting the construction, energy and real estate industries, among others. For instance, a theatre owner hosting a controversial movie premiere on Christmas Day may have insurance coverage for losses triggered by an act of terrorism but this same business might not have it if a comparable attack were to occur on New Year's Day."

The Risk Management Society (RIMS)

RIMS said it was disappointed in the Senate's decision, saying that the program's expiration, "will have many negative repercussions for commercial insurance consumers," and would be a drag on the U.S. economy as a whole.

"Congress allowed a program to expire that has proven to be a success," said RIMS president Carolyn Snow. "Since its inception, TRIA has stabilized the marketplace by providing adequate capacity at affordable rates. Its expiration will almost certainly cause rates to rise, placing many lending agreements in jeopardy and forcing some organizations to self-insure or simply go without. RIMS and many other organizations have been pushing Congress to pass an extension for the past two years but Congress senselessly ignored those concerns and waited until the very last moment. This delay has ultimately led to the worst possible outcome."

Property Casualty Insurers Association of America (PCI)

David A. Sampson, PCI's president and CEO said, "It is unconscionable that the U.S. Senate would adjourn without finishing their job and reauthorizing a long-term Terrorism Risk Insurance Act (TRIA) when the threat of a terrorist attack against the United States is at the highest level it has been in a decade.

"TRIA plays a vital role in our national economic security," added Sampson. "If a massive attack occurs before TRIA is reauthorized, there could be no terrorism insurance coverage or taxpayer protection. PCI is profoundly disappointed by the dysfunction in Washington and we urge the next Congress to address a long-term reauthorization of TRIA immediately when they convene in January."

American Insurance Association (AIA)

Leigh Ann Pusey, the AIA's president and CEO, said the association is "incredibly disappointed that the Senate failed to pass the House-approved (417–7) six-year TRIA reauthorization bill prior to adjourning. By letting TRIA lapse on January 1, 2015, Congress has failed to protect taxpayers and the economy.

"Without TRIA in place on Jan. 1, insurers will be forced to assess their exposures," Pusey continued. "The program's lapse will significantly jeopardize the terrorism insurance marketplace that currently protects our nation's economy against major acts of terrorism. We strongly urge the new Congress to take up the House-Senate negotiated TRIA reauthorization package as its first item of business when it returns in January in order to minimize marketplace disruptions."

The National Association of Mutual Insurance Companies (NAMIC)

"TRIA provides an essential element of certainty and security to our economy against the unknowable threat of terrorism, and the country needed the program's reauthorization," said Charles M. Chamness, president and CEO of NAMIC. "TRIA has helped foster continued economic growth and development in cities and towns across the country, and its expiration puts at risk an already fragile economy. We are incredibly disappointed in Congress. There is no good reason that a program so vital to our nation's economy be allowed to lapse. The country deserved better. We have 14 days left until the program expires; if they won't return on their own, the president should call them back to town to finish their job."

Coalition to Insure Against Terrorism (CIAT)

CIAT spokesman Marty DePoy described the organization as "incredibly disappointed" that the Senate adjourned without reauthorizing the Terrorism Risk Insurance Act. In his statement, DePoy noted that the program since 9/11 has provided critical stability to the marketplace against another terrorist attack. "This is a bipartisan failure; the 113th Congress has let down American workers, American businesses and jeopardized U.S. economic and national security," he said. "CIAT urges the new Congress to make TRIA reauthorization its top priority in January and immediately vote to extend the program for the long term."

NAIOP, the Commercial Real Estate Development Association

"The failure to renew TRIA will come at a significant cost to our economy, job growth and progress in the commercial real estate market," said NAIOP President and CEO Thomas J. Bisacquino. "It's more than a speed bump, it's a stop sign, and that's the last thing our fragile economic recovery needs right now. We hope the President and the new Congress will make renewal of TRIA the first order of business when they return in January."

National Association of Insurance and Financial Advisors (NAIFA)

A less-publicized portion of TRIPRA included the National Association of Registered Agents and Brokers (NARAB) Reform Act of 2014, which establishes NARAB as an independent nonprofit corporation to prescribe, on a multi-state basis, licensing and insurance producer qualification requirements and conditions.

NAIFA President Juli Y. McNeely said that the organization "is disappointed the Senate did not pass S.534, the Terrorism Risk Insurance Program Reauthorization Act (TRIA), which included legislation that would have created a National Association of Registered Agents and Brokers (NARAB). NARAB II would have allowed insurance agents to operate in multiple states more efficiently."

Special Reports /

Shock, dismay and disappointment: P&C insurance industry's reaction to TRIA news

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