Share on Facebook Share on Twitter Share on Google+ Share on Linkedin Before the New Year, Congress failed to reauthorize the federal backstop for terror insurance, prompting an outcry from insurance industry leaders and trade groups. Last week, TRIA was reauthorized through 2020. Tracy Dolin, a Credit Analyst at Standard and Poor’s, speaks with WRIN.tv about the impact of TRIA’s and what it means. Ms. Dolin notes that TRIA is extended for six years, but “the private market is going to bear a somewhat higher proportion of the terrorism risk.” There are several changes that will be phased in: Coinsurance is being raised to 20% from 15% The industry event trigger is doubling to $200 million from $100 million There is a higher recruitment of $37.5 billion from $27.5 billion The Secretary of Treasury must consult with the Secretary of Homeland Security before certifying a terrorism act. Even with the short lapse in the law, said Ms. Dolin, “this should not affect (S&P’s) ratings on insurers.” There is the possibility that TRIA may change in the future. According to Ms. Dolin, Congress requested a number of studies. “If the outcome of these studies translates to a longer term or permanent program, the industry might embrace changes to come.” For more on TRIA, and the impact of Congress on the insurance industry, visit the S&P website.