Male   Female
  • UPDATE: Obama reauthorized Terrorism Risk Insurance Act
  • January 14, 2015
  • UPDATE: Obama reauthorized Terrorism Risk Insurance ActBy Emily Miller

    The Terrorism Risk Insurance Act (TRIA) was set to expire at the end of 2014 but, as of yesterday evening, President Barack Obama signed into law a six-year reauthorization of the act.

    Prior to 9/11 attacks, terrorism insurance was lumped into most commercial policies at minimal cost, but this quickly changed. The attacks on American soil cost the insurance industry more than $30 billion in insurance claims.

    To help the United States recover from future terrorism acts, the United States Congress enacted the TRIP to serve as a federal reinsurance backstop against losses arising from terrorism acts.

    The reauthorization of TRIA has most recently been praised by The Independent Insurance Agents & Brokers of American as well as Property Casualty Insurers Association of American (PCI).

    Another strong supporter is the National Association of Realtors, who said without the act, organizations that build large venues like convention centers and sports arenas would be at financial risk if something were to happen.

    Under the revised act, federal assistance would start when losses reach $100 million with an increase of $20 million per year, so that by year 2020, the loss threshold would be $200 million.

    If the act was not reauthorized for another six years, most insurance companies would most likely be unable to offer terrorism insurance coverage at all. The construction of large venues would also most likely stop and even some high-profile public events might be canceled.

    “[This] provides a crucial framework for economic recovery in the wake of a catastrophic terrorist attack,” said Chris Polychron, National Association of Realtors president in a statement following the vote.

    He also said many commercial property owners are required by their mortgage lenders to carry terrorism insurance.

    “A well-functioning private terrorism insurance marketplace has been preserved because Congress and the Administration made TRIA’s reauthorization an immediate priority,” said The American Insurance Association President and CEO, Leigh Ann Pusey. “The program, which has overwhelming bipartisan support, will continue to protect our nation’s economy against major acts of terrorism.

  • Category: Articles Library, Industry News, More news

Leave a Reply



Consumer Insurance Guide SM provides a wide selection of originally-authored articles and expert advice targeted to the self-directed insurance shopper. Our mission is to provide consumers with useful, money-saving information on all things having to do with making sound insurance purchase decisions.

Consumer Insurance Guide SM is owned by Life Quotes, Inc. 8205 South Cass Avenue, Darien, IL. For editorial, content feeds, advertising and lead purchase opportunities, contact Robert Bland at

Originally founded in 1984 as Quotesmith Corporation, Life Quotes, Inc. owns and operates and, two online consumer insurance information services that cater to the needs of self-directed personal and corporate insurance shoppers.

About Us  |   Contact Us  |   Press Releases  |   The Best Privacy Policy  |   Life Insurance  |   Careers
For Agents & Brokers  |   Site Map  |  

Copyright ©1984-2015 Life Quotes, Inc., 8205 South Cass Avenue, Suite 102, Darien, Illinois. Life Quotes, Inc. and certain of its personnel are licensed as insurance agents, brokers or producers in all states. CA agent #0A13858, LA agent #200696, MA agent #333509159. dba Life Quotes Insurance Services in CA under agent #0827712, in LA under agent #205078. dba Life Quotes Insurance Services, Inc. in UT under agent #90093. All rights reserved. Telephone (630) 515-0170. Founded 1984.