Latest Developments (as of Dec. 16, 2014, 11:30 a.m. CT):
Industry stakeholders continue to closely monitor last minute developments with the Dec. 31 expiration of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).
The Bill awaits Senate approval following a Dec. 10 vote by the US House of Representatives to extend the federal government’s terrorism insurance backstop program for six more years. The measure (S.2244) passed by the House would raise the trigger for government reimbursement from $100 million to $200 million and increase companies’ co-payments from 15 percent to 20 percent.
Adding to the tension presented by the timing of TRIPRA’s pending expiration and a lame-duck session, the Senate has been vocal about its disdain for the House-approved Bill’s inclusion of an unrelated rider, amending Dodd-Frank Wall Street Reform. Also included in the House Bill – but seemingly less contentious – is the creation of a National Association of Registered Agents and Brokers, NARAB.
The press is indicating optimism about the measure’s passage prior to its expiration; however, as of this writing it remains pending.
Preparing Our Clients:
The industry is watching this decision carefully. In the meantime, Lockton is preparing options for clients should they become necessary. If the US Terrorism Program is not renewed, we expect the following:
- A rise in terrorism insurance rates
- Constrained capacity for both property and WC coverage in high profile, high concentration geographies in the US
- A need for creativity in structuring your insurance program.
We are prepared to help you navigate these issues in the coming days.
For More Information:
Read more about the Bill, including an option to track its progress with email alerts.