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Managing Terrorism Risk as TRIPRA Nears Expiration


The Terrorism Risk Insurance Protection and Reauthorization Act (TRIPRA) is set to expire on December 31, 2020. Based on history, it’s likely that an extension or reauthorization of TRIPRA will not be addressed in Congress until we approach the expiration date. And although legislators in both chambers of Congress generally recognize the important role that the federal backstop plays in ensuring market stability, terrorism insurance buyers should prepare for several potential adverse outcomes.

It’s vital that risk managers develop and execute strategies to prevent potential disruptions in their coverage. Marsh can help you to plan for potential outcomes and evaluate your risk financing options so you can remain protected from terrorism risks in 2020 and beyond.

Helping You Evaluate Your Options
Organizations should consider alternatives to minimize any disruptions of their terrorism insurance coverages if there is any lapse in program funding and/or a change in program dynamics. Marsh can help businesses:

  • Explore options in the standalone terrorism insurance market. Standalone policies do not require the government to certify an act of terrorism in order for a claim to be paid and can offer broader definitions and triggers, including coverage for nuclear, biological, chemical, and radioactive (NBCR) attacks. And, unlike TRIPRA coverage — which applies to insureds’ US locations only — standalone policies can offer global coverage.
  • Secure options to buy out their retentions and coinsurance participation if they run property terrorism coverage through captives. Marsh can help you move coverage to the standalone marketplace and help you develop insurer relationships to address coverage in the event that TRIPRA expires.
  • Manage potential sunset clauses in property terrorism policies, which insurers may impose in upcoming renewals for policies that would be in effect beyond December 31, 2020.

To learn more about how Marsh can help you manage your terrorism insurance program, contact your Marsh representative today.