The Terrorism Risk Insurance Act (Tria) is on its way to the Oval Office following a 93 to 4 vote supporting it in the US Senate.
The Senate acted quickly to pass the bill after it passed the US House of Representatives by an overwhelming majority on Wednesday.
The bill, which has now passed the House and the Senate, extends Tria for 6 years while also gradually raising the loss trigger of the programme, from $100m to $200m over the course of the programme.
Also created in the bill is a provision to create a national association of registered agents and brokers (NARABII), as well as a controversial modification to the Dodd-Frank act that would ease financial product regulation for smaller companies, called an end-user provision.
This final clause in the bill was unpopular among Democrats and prompted Senator Elizabeth Warren (D-MA) to table an amendment in the Senate to strike down the Dodd-Frank modification.
However Warren’s amendment was struck down after it failed to garner the 60 votes necessary to make an amendment and the House’s version of the bill was subsequently passed.
The industry was quick to applaud the speed with which Congress acted on passing a Tria authorisation bill. Dan Riordan, chief executive (CEO) of Zurich Global Corporate in North America spoke to Reactions following the vote and said that the passage of the bill through Congress was good news for the industry.
He said that Congress had moved quickly to remove the uncertainty that had existed in the market following the expiration of the programme and that the pace of Congress to secure the programme’s future was something that Congress should be “proud of”.
The bill will now go to the White House for the President’s signature. The Obama Administration, like Warren, had previously expressed its disapproval over the additional Dodd-Frank provisions however it did not say it would veto the bill.