Here we review past GC Capital Ideas stories that have focused on legislation surrounding insurance covering terrorist acts.
Terrorism Risk Insurance Act (TRIA): The future of the federal terrorism insurance backstop continues to dominate the U.S. terrorism (re)insurance market. Despite the reduced risk of a spectacular terrorist attack on the scale of the September 11, 2001, attacks, extremists continue to pursue attacks on U.S. soil and (re)insurers are therefore lobbying to extend the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA). The program is currently due to expire in December 2014 and there is considerable uncertainty at this time as to whether Congress will renew the program or how it may propose to alter its structure.
Future of TRIPRA and Implications on the (Re)Insurance Market: There are now limited expectations of terrorism insurance being addressed in Congress before TRIPRA’s expiration in 2014. If TRIPRA is not extended or is substantially modified, there will be an impact on embedded terrorism insurance coverage, standalone terrorism pricing/demand for capacity and TRIPRA captive placements.