INDUSTRY AWAITS SENATE DECISION ON TRIA EXTENSION

Insurers will likely learn today whether or not the Senate has backed plans for an extension of the US terrorism insurance backstop for a further six years. Senate majority leader Harry Reid had targeted a vote on reauthorisation of the Terrorism Risk Insurance Act as one of a number of bills he was looking to pass by today at the latest following discussions on Friday and Saturday. Discussions have been taking place behind closed doors during the course of the weekend but as yet no indication has emerged as to whether the Senate will back the proposed Tria extension. Should the Senate pass the bill, it will then be handed to President Obama to authorise. The existing Tria legislation is due to expire at the end of the year, meaning failure for the Senate to reach agreement will lead to a lapse in the terrorism backstop. A renewal moved a step closer last week when the House of Representatives voted 417-7 in favour of a continuation of a modified Tria. Under the proposed bill, Tria will continue for a six-year term and include a number of changes, including a gradual increase in the attachment point for government cover, rising from the existing $100m to $200m through an annual increase of $20m. A number of industry associations, including the Property Casualty Insurers Association of America, have called on the Senate to vote in favour of the renewal.