Terrorism Risk Insurance Program Reauthorization Act of 2015

On January 12, 2015 the Terrorism Risk Insurance Program Reauthorization Act of 2015 was enacted, reauthorizing the program for an additional six years (12/31/2020). Although the program expired on December 31, 2014 due to lack of action by Congress, the January reauthorization allowed for no gap in program coverage. Key changes to the TRIA program that began January 1, 2016 are:

  • Federal share reduces from current 85% to 80% (by 1% per year)
  • Program trigger increases from current $100M to $200M (by $20M per year)
  • Industry’s aggregate retention increases from current $27.5B to $37.5B (by $2B per year), and Treasury’s recoupment rate increases from 133% to 140% 

View a side-by-side comparison of expired TRIA program and the new Terrorism Risk Insurance Program Reauthorization Act of 2015.  

In March 2016, FIO issued a voluntary data call, which treated admitted and nonadmitted insurers consistently. In July 2016, the NAIC also issued a mandatory data call related to terrorism insurance. In 2017, both the NAIC and FIO issued mandatory data calls. Insurers should expect to respond to both state and federal TRIA data calls until otherwise advised by individual states or the federal government by regularly reviewing notices on the Department of Treasury’s FIO website or the National Association of Insurance Commissioners’ website. 

TRIA Materials

  • NAIC Model Bulletin on Filing Procedures for Compliance with TRIA Program Reauthorization Act
  • U.S. Department of Treasury issued interim guidance concerning the TRIA Program Reauthorization Act.
  • FIO reports: 2016, 2017
  • We recommend reviewing Department of Insurance websites annually for TRIA related bulletins to ensure you maintain appropriate compliance as it relates to your practice.

Additional Comment Letters

December 10, 2014 - Trade Association TRIA Support Letter
May 15, 2014 – NAPSLO Letter of Support for Insurance Data Protection Act
February 25, 2014 - NAPSLO Testimony before Senate Banking Committee on TRIA 
June 10, 2013 – NAPSLO Comments to FIO on Natural Catastrophes and Insurance 
May 17 and February 27, 2013 – NAPSLO Letters to FHFA regarding Lender Placed Insurance
September 16, 2013 – NAPSLO Comments to FIO on TRIA 
March 19, 2013 – NAPSLO Testimony to Senate Banking Committee on NARAB