H.R. 7128: TRIA Program Reauthorization Act of 2026

The TRIA Program Reauthorization Act of 2026 aims to extend and update the existing Terrorism Risk Insurance Program, which was initially established to help manage risks associated with acts of terrorism. Below are the key components of the bill:

1. Extension of the Program

The bill proposes to extend the duration of the Terrorism Risk Insurance Program from its current expiration in 2027 to a new expiration date in 2034. This extension allows for continued federal support for insurance against terrorism-related losses.

2. Improvements to the Certification Process

The bill introduces modifications to how acts of terrorism are certified, which is essential for triggering federal assistance under the program. The changes include:

• Increased Financial Thresholds: The bill raises the minimum losses required for an event to qualify as an act of terrorism. This increase is from $5 million to $25 million.
• Deadline for Certification: It establishes that the Secretary must complete the certification process within 90 days of public notice regarding the evaluation of an act for terrorism classification.
• Public Notification: The bill mandates the Secretary to inform the public within 30 days of starting the certification process. Additionally, the Secretary may provide updates on acts not being evaluated.

3. Technical Amendments

The bill also includes various technical amendments to ensure clarity and coherence in the Terrorism Risk Insurance Act of 2002. This involves:

• Adjustment of Dates: Several date references within the existing law are updated from previous years to new target dates extending into the 2030s.
• Terminology Clarification: The act clarifies that the proper title of the program is "Terrorism Risk Insurance Program" instead of "Terrorism Insurance Program." This change is intended to enhance consistency across legal references.

4. Purpose of the Program

The overall purpose of the Terrorism Risk Insurance Program is to provide a federal backstop for insurance claims resulting from terrorist acts, supporting the insurance market, and ensuring that businesses and families have access to coverage in the event of a terrorist event.

Relevant Companies

• AIG (American International Group, Inc.): AIG is a major provider of property and casualty insurance and may benefit from the program's extension as it provides terrorism risk coverage.
• Allstate Corporation: Allstate offers insurance products that include coverage for terrorism and could see impacts from changes in federal support.
• Chubb Limited: As a global insurance provider, Chubb may be significantly influenced by the provisions of this bill in terms of underwriting and risk assessment.