Congress extends terrorism insurance backstop, shifts $5B in risk to private insurers
H.R. 7128 — TRIA Program Reauthorization Act of 2026 · Filed by Mike Flood (R-NE) · 4 cosponsors · Introduced Jan 16, 2026 · Passed chamber
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What it does
This bill extends the Terrorism Risk Insurance Program (TRIA) through 2034, allowing the federal government to backstop catastrophic terrorism-related insurance losses. It raises the threshold for federal coverage from $5 billion to $10 billion for acts after 2029, streamlines the process for certifying acts as terrorism (with a 90-day review period, extendable to one year), and requires the Secretary to publish notices and final determinations in the Federal Register so the public knows which incidents are under review and why.
Why we flagged it
The bill's core function is reauthorizing and modifying the federal terrorism insurance backstop—a program that directly affects how private insurers price and manage terrorism risk. The threshold increase and certification-process changes are regulatory adjustments that benefit the insurance sector by clarifying rules and reducing federal exposure.
What the text implies
- Raising the federal threshold from $5B to $10B for post-2029 acts effectively privatizes more terrorism risk, shifting potential losses to insurers and their customers; this may reduce insurance availability or raise premiums in high-risk areas.
- The 90-day certification timeline with a one-year extension creates a window of uncertainty during which insurers cannot finalize claims or reserve adequately, potentially destabilizing markets during active investigations.
The full analysis lists 4 implications of this text.
Who stands to gain
property and casualty insurers (AIG, Arch Capital, Everest Re, etc.); reinsurers; insurance brokers and agents