The captive insurance industry has become accustomed to Congress waiting until the last second or beyond to extend the federal terrorism insurance backstop.
This year, when the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) expires December 31st, could prove no different.
With the deadline in sight, JLT Insurance Management has published an update on this vital insurance backstop. It includes a brief history, explains why the law is so important to captive and commercial insurance company customers, and lists some of the most important features that may change with a new version.
For example, the most recent Senate bill would keep the backstop trigger at $100 million, but raise both the deductible and copayment. A version passed along to the house for action from its Financial Services Committee would make more drastic changes, including increasing the trigger to $500,000 for traditional terror acts, but leaving the trigger the same for nuclear, biological, chemical and radiological events.
JLTIM believes that the captive insurance industry, and perhaps more deservedly, American property owners, will see a bill near year’s end that may include some minor changes, but nothing of major significance.
To read JLT’s latest paper on TRIPRA, visit their website here.
JLT, congress, TRIPRA, TRIA, terrorism, Senate