National League of Cities Applauds the Senate for Passing the Terrorism Risk Insurance Program Reauthorization
Washington, D.C. – National League of Cities applauded the Senate today for passing a bill to extend the Terrorism Risk Insurance Act (TRIA) for seven years. NLC calls on the House leadership to swiftly pass similar legislation as soon as possible. As primary targets for terrorist action are typically in or near cities, terrorism risk insurance protects cities against loss or liability that could significantly affect personnel, property, finances and the ability of the local government to continue to fulfill its responsibilities to the public it serves.
More than 12 years after the tragic events of 9/11, the potential risk of large-scale terrorist action in cities across the nation continues to challenge the capacity and risk models of the private insurance market.
TRIA remains a vital public-private risk sharing mechanism with a federal backstop that guarantees terrorism risk insurance coverage remains affordable and available to local governments. While TRIA is not set to expire until the end of the year, the renewal period for risk insurance for many cities is fast approaching, so cities need Congress to act now.
"Today, we thank the Senate for finding a bipartisan path forward to ensure that communities will be able to purchase affordable terrorism risk insurance policies,” said NLC Executive Director Clarence E. Anthony. “If TRIA is not extended, cities that have terrorism risk policies could see conditional exclusions in their policy renewals, which would result in significant gaps in coverage. The horrible specter of terrorism is still a real possibility and we cannot let any insurance gaps to occur.”
NLC is committed to making sure cities have affordable access to terrorism risk insurance and will continue to work with Congress to pass this important legislation now.