Terrorism Risk Insurance

Act Extends until 2020

Axis Capital Group Insurance

Terrorism Risk Insurance Act Extends

until 2020

New York, NY - President Barack

Obama signed into law January

12 the extension of the Terrorism

Risk Program Reauthorization

Act of 2015 which extends the

program until December 31,

2020.

Terrorism is defined as the violent acts perpetrated by or on behalf

of a foreign or domestic person or interest coerce or influence U.S.

Policy.

The Terrorism Risk

Insurance Act is a

United States Federal

Law signed by Pres.

George W. Bush on

November 6, 2002 after

the devastating

terrorism attack on

September 11, 2001 at

the World Trade Center

resulting to a $40 billion

estimated insurance

loss.

It was the worst fatal

attack on record for

both property and

fatalities and the

worst international

act of destruction on

American soil. The

law was set to

expire on 2005 but

was extended on

2007. The current

law expired on

December 31, 2014.

Amendments of the said law was also

made in the extension which includes

program triggers from $100, 000, 000 to

$120,000,000 in 2016, $140,000,000 in

2017, $160,000,000 in 2018, $180,000,000

in 2019 until $200,000,000 in 2020 and

any calendar year thereafter.

The extension of the said program has also been stretched into 6 years. The Treasury

Secretary becomes the decision maker on the Certification of a terrorist event (requiring

only consultation with the Secretary of Homeland Security and the Attorney General of

the USA).

In addition, the Certification process will be reviewed (within 9 months of the enactment date of the 2015 Act), resulting in an improvement in the Certification process with the publication of rules and the establishment of a reasonable timeline for Certification.

On the senates failure to extend the program before their holiday vacation,

taxpayers have hoped to have lesser

financial risks but some businesses dreaded

to lose or drop their terrorism coverage and

the general fear of having slow economic

growth when another attack occurs.

So far, there are also a few countries around the world with long-time terrorism risk insurance policies over the years. United Kingdom, Netherlands and Iraq have their own kinds of programs. Countries such as Indonesia (with Jakarta as its main pool of insurance companies), Denmark and India have not imposed a compulsory on their terrorism insurance scheme.

Insurance agencies such as Axis Capital with its group of insurance and

reinsurance companies scattered all over the world extends their coverage

as well in fear of being tagged as scams.