Senate Passes TRIPRA Legislation

January 8, 2015 — Ending three weeks of anxiety for many purchasers of terrorism insurance, the US Senate today passed the Terrorism Risk Insurance Program Reauthorization Act of 2015 (TRIPRA), which was approved by the House of Representatives yesterday. The law, once signed by President Obama, puts back in place for six years a federal terrorism insurance backstop that was first established in 2002 following the terrorist attacks of September 11, 2001.

If you buy terrorism insurance, TRIPRA’s passage lends more certainty to your insurance and risk management programs. Congress’ swift passage of TRIPRA after reconvening this week is likely to generally blunt any long-term price increases or a lack of adequate insurance capacity in the terrorism insurance markets.

The period of uncertainty around TRIPRA, which followed the Senate adjourning without its reauthorization in December, serves as a reminder of some risk management best practices, including the importance of differentiating your risk. For example, the effective use of terrorism risk models and business continuity plans can play a key role in improving business resiliency and accessing alternative terrorism insurance markets. To learn more about such measures, contact your Marsh representative.

Our experts are available to discuss with you a range of issues related to terrorism risks. We are committed to providing you with insights that help you understand potential exposures, secure appropriate insurance coverage, and otherwise mitigate the impact a terrorism event could have on your organization.

For more information, please contact your Marsh representative.