Hearing Entitled: The Reauthorization of the Terrorism Risk Insurance Act of 2002

House Subcommittee on Housing and Insurance

2025-09-17

Loading video...

Source: Congress.gov

Summary

Okay, here’s a markdown summary of the meeting transcript, formatted as requested:

Meeting Summary: TRIA (Terrorism Risk Insurance Act) – November 15, 2023

Date: November 15, 2023 Location: [Insert Location Here - Assume Conference Room] Attendees: [List of Attendees – Include Role]

I. Opening Remarks & Introductions

  • Commissioner Andrew Mais: Briefly acknowledged the meeting's purpose – reviewing the current state of TRIA and discussing potential areas for improvement.
  • Mike Flood: Presented a timeline for the upcoming week, focusing on the need for revised data collection and a review of existing program parameters.
  • Ritchie John Torres: Presented a focus on the need for a comprehensive review of existing data collected and processed.

II. Key Discussion Points & Decisions

  • Cybersecurity Threats: A significant concern was raised regarding the evolving threat landscape and the need for increased investment in cybersecurity measures, especially for critical infrastructure.
  • TRIA (Terrorism Risk Insurance Act) Implementation: The importance of timely TRIA implementation for preventing catastrophic damage has been re-emphasized.
  • TRIA Expansion: Discussed expanding TRIA’s jurisdiction to include more industries and potentially expanding the scope of TRIA to cover certain events.
  • TRIA Reauthorization Timeline: Discussions focused on potential reauthorization targets and the need for a clear roadmap for moving forward.
  • State of TRIA: The state of TRIA, specifically regarding its benefits and limitations for consumers, and it's effectiveness.
  • Insurance Company Capacity & Coverage: Discussed challenges within the insurance sector regarding the ability to cover terrorism risks and the need for ongoing improvements in insurance policies.
  • TRIA Reauthorization Discussion: The committee proposed a meeting with representatives from industry to clarify timelines for TRIA, and explore the most beneficial approach.

III. Executive Summary

The meeting highlighted the critical need to address the evolving threat landscape and to ensure the continued stability and effectiveness of the TRIA program. Collaboration among various stakeholders, including industry, government, and insurers, was emphasized as essential for navigating the complexities of terrorism risk.

Notes:

  • Please replace the bracketed placeholders with the actual details of the meeting.
  • Consider adding any specific policy decisions or action items that were taken during the meeting.

Do you want me to expand on any particular section or add more details?

Participants

Transcript

The Subcommittee on Housing and Insurance will come to order.
C
Commissioner Andrew Mais
Without objection, this chair is authorized to declare a recess of the committee at any time.
This hearing is titled The Reauthorization of the Terrorism Risk Insurance Act of 2002.
M
Mr. Baird Webel
Without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record.  At this time, I'd like to recognize myself for four minutes for an opening statement.
C
Commissioner Andrew Mais
I'd like to first of all thank all of our witnesses for being with us today and I very much look forward to hearing your testimony on the Terrorism Risk Insurance Program.
This program was created in the aftermath of tragedy.
M
Mr. Baird Webel
After the events of September 11th, 2001, the risk of terrorism suddenly became an all too real situation for many Americans.
C
Commissioner Andrew Mais
On that terrible day, the unthinkable happened and the world forever changed.
M
Mr. Baird Webel
After the terrorist attacks of September 11th, terrorism risk,
C
Commissioner Andrew Mais
which was previously something that had been incorporated directly into the underwriting of commercial property and casualty insurance, seemed like a risk far too remote and difficult to quantify and underwrite.
M
Mr. Baird Webel
As a result, the federal government stepped in with what was initially proposed as a temporary federal reinsurance program.
C
Commissioner Andrew Mais
The Terrorism Risk Insurance Program was created in November of 2002, and it has since been reauthorized four times in 2005, 2007, 2015, and again in 2019.
M
Mr. Baird Webel
The next expiration of Terrorism Risk Program is at the end of 2027.
C
Commissioner Andrew Mais
That may seem distant, but the reality is that terrorism risk contracts typically extend for one year.   As we approach 2026, it makes sense to begin conversations on what a TRIA reauthorization should look like.
M
Mr. Baird Webel
And for members of the subcommittee, this hearing is a first step in the reauthorization process and an opportunity to learn more about the Terrorism Risk Insurance Program.
C
Commissioner Andrew Mais
We need to know how the program has changed over time, what the program does well, where it can be improved,   as we begin considering reauthorization.  I have two priorities on this issue.  Number one is to work quickly to provide the certainty required for insurers and insureds to continue providing terrorism risk insurance and at a reasonable cost.
M
Mr. Baird Webel
And two, to ensure that we work to mitigate taxpayers' exposure to this program.  Since the terrorism risk program was created in 2002, we have been fortunate.
C
Commissioner Andrew Mais
Knock on wood.  There has never been a certified act of terrorism by the Department of Treasury, nor has there been events that would have reached the Terrorism Risk Insurance Program's financial trigger.  We, of course, hope that no future events ever, ever occur that would trigger that.  However, TRIA's value is not just in direct responses to terrorism events.
M
Mr. Baird Webel
The program makes it easier to have an operating market where entities can purchase insurance that covers terrorism risk
C
Commissioner Andrew Mais
and a well-functioning insurance market makes it possible for all entities and entities of all kinds to purchase insurance against terrorism risks.  The Terrorism Risk Insurance Program helps our economy bounce back in the event of attack, and it provides market stability and peace of mind in the interim.  So I look forward to hearing from our expert panel today, and we are going to talk terrorism risk insurance all morning, and with that, I yield back.
I now recognize the ranking member of the subcommittee, Mr. Cleaver, for four minutes for an opening statement.
Thank you, Mr. Chairman, for holding this important hearing on the reauthorization of the Terrorism Risk Insurance Program, also known as TRIA.  I will, for the rest of my life, remember where I was at the very moment that the report came through on what happened in New York.   Katie Couric, who's no longer a TV reporter, saying, something seems to have flown into a building here in New York.  The terrorist attack on September 11, 2001, devastated U.S.  citizens, households, and businesses.  As a direct result of the unforeseen and unexpected level of covered losses,   insurers began to explicitly exclude terrorism coverage and commercial property casualty insurance policies.  Additionally, due to state laws prohibiting the exclusion of individual risk elements from workers' compensation insurance, the potential for enormous liability created a crisis that impacted employers across the nation.  In response,   Congress passed and the President signed TRIA into law to stabilize the market for terrorism risk insurance.  Since that time, Congress has been able to come together and reauthorize the program four more times, most recently in 2019.  Many members were not on the committee during those authorizations, and I hope this hearing is educational on the value and elements of the program.   The threat of a terrorist attack on the homeland has not subsided.  According to the 2025 annual threat assessment from the Office of the Director of National Intelligence, he writes, and I quote, a diverse set of foreign actors are targeting the U.S.
health and safety, critical infrastructure, industries, wealth, and government.  The Department of Homeland Security   Office of Intelligence and Analysis 2025 Homeland Threat Assessment states, foreign terrorists, organizations, FTOs, and their supporters will maintain their enduring intent to conduct or inspire attacks here in the homeland, unquote.  The threat of terrorism impacts the entire nation, including my home district in the Midwest.

Sign up for free to see the full transcript

Accounts help us prevent bots from abusing our site. Accounts are free and will allow you to access the full transcript.

Sign up