Federal legislation to extend the Terrorism Risk Insurance Act will head to the full Senate after unanimously getting a nod from the Senate Banking Committee.
The committee on Sept. 17 voted 24-0 to advance S. 4395, the Terrorism Risk Insurance Program Reauthorization Act of 2026. The U.S. House of Representatives in June overwhelmingly passed legislation to extend the public-private partnership started when insurance for terrorism risk disappeared following 9/11.
“Extending TRIA is critical because terrorism poses uniquely unpredictable risk. We don’t know where or when terrorists will strike, and unlike natural disasters, terrorists can and will adapt to counter any efforts to protect ourselves,” said Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies.
At the end of July, a large group of organizations including NAMIC, the American Property Casualty Insurance Association, the Independent Insurance Agents & Brokers of America, the Reinsurance Association of America, the Wholesale & Specialty Insurance Association, the Council of Insurance Agents & Brokers, and the Vermont Captive Insurance Association sent a letter to Senate leaders urging them “to avoid market disruptions and continue the economic certainty provided by the program.”
“Completion of congressional action on a long-term reauthorization of TRIA comes at a time when organizations are taking a fresh look at geopolitical risk. Recent events have prompted many businesses to reassess how they approach terrorism, political violence, critical infrastructure disruption and other complex exposures that can have far-reaching operational and financial consequences,” said Joe Peiser, CEO of Risk Capital for Aon.
TRIA would be extended through 2037 if legislation is approved.
The program has needed reauthorization and has undergone adjustment throughout the years. TRIA has been reauthorized in 2005, 2007, 2015, and 2019 – and it is set to expire Dec. 31, 2027.
Topics Politics
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