Despite the Terrorism Risk Insurance Act (TRIA) being allowed to expire on 31 December 2014, US President Barack Obama has now put pen to paper and reauthorised the country’s terrorism backstop for another six years.
The Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA) became law after swift action by both chambers of the new Congress moved the bill to the President’s desk.
TRIPRA, which does not expire until 31 December 2020, includes a gradual rise in the backstop trigger to $200 million in losses, increasing from the current $100 million by 20 percent per year.
The trigger for nuclear, chemical, biological and radiological losses, however, will remain at $100 million. The TRIA extension also includes a 20 percent copayment (up from 15 percent in the expired bill).
