President Barack Obama signed into law a six-year reauthorization of the Terrorism Risk Insurance Act (TRIA) Monday night. TRIA had expired on Dec. 31 after the Senate failed to authorize the bill in December.
The Independent Insurance Agents & Brokers of America (IIABA or Big "I") praised the bill's passage. "It's been a long time coming, but the Big 'I' has been vigilant for our members and consumers and today's action by the President on this bipartisan legislation marks a tremendous victory for our association and the rest of the industry," said Bob Rusboldt, Big "I" president & CEO.
The bill increases the amount needed in total losses before the TRIA program kicks in from the current $100 million to $200 million, at a rate of $20 million a year beginning in 2016. The bill also raises the federal government's mandatory recoupment from $27.5 billion to $37.5 billion, increasing by $2 billion each year beginning Jan. 1, 2016. For all events, the bill would raise the private industry recoupment total from the current 133% of covered losses to 140% of covered losses.
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