Terrorism insuranceCongress urged to renew the Terrorism Risk Insurance Act

The Terrorism Risk Insurance Act (TRIA) is set to expire at the end of 2014 and members of Congress are urging its reinstatement before it is  too late.

The bill was enacted in 2002 in response to 9/11, and requires private insurers to offer terrorism coverage to individuals, with government assistance should the total payout from an event exceeds $100 million.

As the National Journal reports, many involved in the issue agree that something should be done quickly. Representative Randy Hultgren (R-Illinois) told the publication at the National Journal Live event, a meeting underwritten by Zurich Insurance, “We hear a lot that [TRIA] doesn’t expire until the end of December. In reality, people are making decisions now on new projects. It doesn’t help us at all to get closer to that date.”

A group of bipartisan senators “agreed on legislation last week that would extend the government’s terrorism risk insurance program for seven years, while raising insurer copayments from 15 to 20 percent.”

The Journal also mentions that critics of the bill “argue that the law places a burden on taxpayers, and puts an undue cost on those living in rural areas with less of a terrorism threat. Some say that costs should be more heavily on the private sector, with less public involvement.”

“The uniqueness of this, the risk of this, the uncertainty is unlike everything else,” said Hultgren, “It hurts that the congressional approval rating is so low. We have to get to the point that people trust us, that we’re going to do our homework and make good decisions.”

It is expected that lawmakers will consider renewal after the April break, and propose a reformed bill within the first few weeks of May.