
The Coalition to Insure Against Terrorism (CIAT) submitted a letter this week to the House Financial Services Housing and Insurance Subcommittee ahead of its Sept. 17 hearing on “The Reauthorization of the Terrorism Risk Insurance Act of 2002 (TRIA).” The letter urged lawmakers to act well in advance of TRIA’s scheduled expiration on Dec. 31, 2027. (Letter, Sept. 15 | Watch Hearing)
Why It Matters

- TRIA has been reauthorized four times—in 2005, 2007, 2015, and 2019—and is set to expire in 2027.
- The coalition letter warned that letting the program lapse would trigger “a period of profound economic slowdown, posing a very real threat to our economic and homeland security.” (Letter, Sept. 15)
- House Financial Services Housing and Insurance Subcommittee Chair Mike Flood (R-NE) said Wednesday he intends to propose a clean, eight-year reauthorization of TRIA. (PoliticoPro, Sept. 17 | Press Release, Sept. 17)
- Without TRIA, businesses from real estate and banking to hospitality and sports, could face significant financing challenges if terrorism insurance becomes unavailable or unaffordable. (Letter, Sept. 15)
- The program has never been triggered, but for nearly two decades has provided the commercial real estate industry with a crucial backstop against losses from external threats.
- An RER survey cited in the letter found that more than $15 billion in property transactions stalled or were cancelled in the 14 months between 9/11 and TRIA’s passage, underscoring the economic damage caused by the absence of terrorism insurance.
Hearing Highlights
- Members of the committee stressed the need to reauthorize TRIA, highlighting its role in sustaining a functioning insurance market and protecting the broader economy.
- “TRIA’s value is not just in direct responses to terrorism events. The program makes it easier to have an operating market where entities can purchase insurance that covers terrorism risk, and a well-functioning insurance market makes it possible for entities of all kinds to purchase insurance against terrorism risks,” Subcommittee Chair Flood said.

- House Financial Services Committee Chairman French Hill (R-AR) said, “It’s crucial we take the necessary steps to reauthorize TRIA in addition to enhancing the program’s operations to better protect our economy and strengthen our national security.” (Press Release, Sept. 17)
- During the hearing, Rep. Ritchie Torres (D-NY) underscored the stakes, stating that without TRIA there would be no financing—or far less financing—of projects. “Without TRIA, there would be no operational terrorism risk insurance market, and without TRIA, few businesses in America could survive a catastrophic terrorist event,” Rep. Torres said. (Watch Hearing)
- Michelle Sartain (Marsh McLennan), testified during the hearing that TRIA “has been a model public-private partnership,” remains essential for insuring against catastrophic risks, and warned that uncertainty around reauthorization would ripple through the economy, affecting hiring and investment. (Insurance Journal, Sept. 17)
Background on TRIA
- Enacted in November 2002, TRIA was created in the wake of 9/11 to stabilize insurance markets after private insurers began excluding terrorism coverage from policies.
- The program provides a system of shared public and private compensation for certain insured losses from a certified act of terrorism.
- TRIA operates at virtually no cost to taxpayers, thanks to its recoupment mechanism, and continues to ensure market stability amid persistent threats.
RER’s Advocacy

- Since 9/11, RER has been at the forefront of efforts to secure terrorism risk coverage for American businesses.
- RER launched its Homeland Security Task Force (HSTF) and the Real Estate Information Sharing and Analysis Center (RE-ISAC) to coordinate CRE’s response to physical and cyber threats.
- RER also helped establish CIAT, a broad coalition of commercial insurance consumers formed immediately after 9/11 to ensure that businesses could obtain comprehensive and affordable terrorism insurance. (CIAT Talking Points on TRIA Reauthorization)
RER will continue to work with CIAT and policymakers to ensure a long-term reauthorization of TRIA before its scheduled expiration in 2027.