Latest Developments (as of Dec. 17, 2014, 2 p.m. CT)
Yesterday evening, the Senate adjourned without voting on S.2244, the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). Absent unlikely intervening action, the Act is set to expire on Dec. 31, 2014 and will be revisited after the next Congress reconvenes on Jan. 6, 2015.
The non-renewal has wide-reaching industry implications, as the Federal backstop will be unavailable to traditional insurers as well as domestically domiciled captive insurers. Rating agency interest in insurers will likely be heightened as a consequence.
The marketplace response to these developments is fluid. For clients with an elevated exposure profile, Lockton teams are facilitating client-specific discussion with their insurers to examine any immediate impact. Policy language varies and may contain provisions allowing for cancellation, exclusion or re-rating in the absence of the Federal backstop.