American Lawmakers Push Long-term Terrorism Risk Insurance Renewal

Int’l Insurance Desk: The Senate Banking Committee voted unanimously on Thursday to advance legislation that would reauthorize the federal Terrorism Risk Insurance Act, clearing the way for a full Senate vote. The measure, known as S. 4395 or the Terrorism Risk Insurance Program Reauthorization Act of 2026, passed the committee by a 24-0 margin and now moves to the Senate floor.

TRIA was first created in the aftermath of the September 11 attacks when private insurers largely withdrew from covering terrorism risk. The program has provided a government backstop ever since, helping keep coverage available and affordable for businesses, commercial real estate and major construction projects. Without it, many insurers have warned that the market could again seize up, raising costs and complicating financing for large developments.

The current authorization is set to expire at the end of 2027. Industry groups have urged Congress to act well ahead of that deadline to avoid uncertainty that could already affect multi-year policies and project planning. The House of Representatives passed its own version of the reauthorization earlier this year by a wide bipartisan margin. The two chambers will still need to resolve differences, including the length of the extension and certain certification thresholds, before a final bill can reach the president.

Supporters on both sides of the aisle have described the program as essential for economic stability. They note that roughly 60% of American businesses carry terrorism coverage and that a lapse could disrupt housing construction and commercial activity across the country. Trade associations representing property and casualty insurers, agents and reinsurers have welcomed the committee’s action and called for swift passage of a long-term extension.

The committee vote comes as lawmakers mark the anniversary of the attacks that originally prompted the program. For now the legislation heads to the full Senate, where its bipartisan backing suggests a relatively smooth path, provided differences with the House bill can be worked out.