Insurance trade groups have welcomed the Senate's passage of a long-term extension of the Terrorism Risk Insurance Act. Their focus has already shifted to closing the gap between two versions of the bill before the end of the year.
The Senate cleared the Terrorism Risk Insurance Program Reauthorization Act of 2026 by unanimous consent late on September 28, according to the Senate's daily floor record. That followed a unanimous 24-0 vote in the Senate Banking Committee earlier in the month, which Insurance Business covered at the time.
The American Property Casualty Insurance Association (APCIA) described the vote as evidence of bipartisan agreement that the backstop remains essential.
Sam Whitfield (pictured), the association's senior vice president of federal government relations and political engagement, said TRIA had protected businesses, taxpayers and the wider economy for more than two decades at virtually no cost to the public purse. He said timely renewal would give insurers, lenders, employers and developers the certainty they rely on.
"APCIA urges lawmakers to quickly reconcile any differences between the bills and deliver a long-term reauthorization to the President before year-end," Whitfield said.
The association thanked Senate Banking Committee chairman Tim Scott, ranking member Elizabeth Warren, and Senators Dave McCormick and Tina Smith for moving the bill forward.
The National Association of Mutual Insurance Companies (NAMIC) framed the vote around the financing of new development.
"Construction and development across the country depend on having coverage against terrorism available to secure financing and create jobs," said Jimi Grande, NAMIC's senior vice president of federal and political affairs.
Both chambers want to extend the program for seven years, through 2034, beyond its current expiry on December 31, 2027. The bills are not identical, however.
The Senate version is a straight extension of the existing framework. The House bill, which passed by 373 votes to 15 in June, would raise the insured loss threshold for certifying an act of terrorism from $5 million to $10 million from 2029. It would also require the Treasury to give notice during the certification process. The two chambers must either agree on a compromise or adopt one of the versions before a bill can reach the president.
The Coalition to Insure Against Terrorism, which represents commercial policyholders, has said it wants the extension enacted in 2026. It has argued that past renewals running into the final year of an authorization caused market uncertainty and disruption. The coalition has also pushed for the bill to be attached to a "must pass" legislative vehicle this year.
The industry's push to finish in 2026, a full year early, comes from experience. According to the National Association of Realtors, previous delays led insurers to add conditional exclusions to policies. This left borrowers exposed, and some commercial property owners risked technical default on loans that required terrorism cover.
For commercial brokers, the practical risk is not a lapse in 2027 but a slow reconciliation. If the two chambers fail to agree before year-end, the question moves into 2027, the final year of the current authorization. That would put renewals written during 2027 on policies extending past the expiry date back in sunset-clause territory, with lenders, real estate clients and construction accounts seeking assurances brokers cannot yet give.
The House's proposed rise in the certification threshold is small in the context of a program that has never been triggered by a certified event. Still, it is the one live policy question in a debate that is otherwise about timing. The final bill's treatment of that threshold is worth watching for clients holding significant terrorism exposure.
