S&P predicts Congress will reauthorize, overhaul TRIA backstop
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Standard & Poor's Corp. on Monday said it believes Congress will reauthorize the federal government's terrorism insurance backstop program, but the New York-based rating agency cautioned that the program could be significantly changed.
In an analysis, S&P said that reauthorization of the program, which is slated to expire on Dec. 31, might not take place until early 2015. If the program is reauthorized, as S&P said it is “cautiously optimistic” will happen, insurers could face a higher industry event trigger for terrorism attacks, increased deductibles or other additional requirements, said S&P.
The renewed program could “also mandate that insurers explicitly cover newer threats, such as terrorist cyber attacks,” according to S&P.
“Significant work remains to be done before any extension will be enacted,” said S&P in the analysis. It noted that while key lawmakers in both houses of Congress have indicated their support for extending the program “in some form,” no reauthorization bill has yet to make it out of committee.
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