CONGRESS RESUMES TOMORROW WITH TRIA STILL UP IN THE AIR

The industry is awaiting further guidance as to what action Congress will take regarding the reauthorization of the Terrorism Risk Insurance Act when it reconvenes tomorrow (Tuesday January 6th). The programme expired at the end of December 31, leaving uncertainty as to the future of terrorism insurance in the US and concerns for impacted coverages such as casualty, workers’ compensation, general liability, excess liability and umbrella policies. Congress passed TRIA (and extended it twice) in the wake of the September 11, 2001 terrorist attacks, providing a federal backstop that is triggered by $100m in losses from an attack. Last month, the House of Representatives approved a six-year extension to a revised TRIA but the Senate was prevented from voting on the measure before closing for its winter recess due to the objections of outgoing Senator Tom Coburn of Oklahoma.