President Barack Obama has signed into law H.R. 26, The Terrorism Risk Insurance Program Reauthorization Act of 2015, Property Casualty Insurers Association of America reported yesterday, calling the signing a “momentous occasion.”
In a statement, Nat Wienecke, senior vice president, federal government relations for PCI said,
“This long-term legislation will minimize market disruptions, maintain the availability and affordability of terrorism insurance for consumers, and protect taxpayers, adding that the overwhelming bipartisan votes in both houses “are a testament to the need for this critical program to preserve economic certainty today and provide for economic resiliency in the face of a catastrophic terrorist event.
In addition to reauthorizing the terror insurance program for six years, the law raises the trigger amount needed in total losses before the program kicks in from the current $100 million to $200 million, over five years, beginning in calendar year 2016.
Also over five years, starting Jan. 1, 2016, the mandatory recoupment rises from $27.5 billion to $37.5 billion, increasing by $2 billion each year.
For all events, the bill raises the private industry recoupment total from the current 133 percent of covered losses to 140 percent of covered losses.
Source: Property Casualty Insurers Association of America