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Today, the House Financial Services Committee is holding a Housing and Insurance Subcommittee hearing, led by Subcommittee Chair Mike Flood (NE-01), to examine the Terrorism Risk Insurance Act's (TRIA) structure and operations ahead of its current expiration date of December 31, 2027.

Read Subcommittee Chair Flood’s opening remarks as prepared for delivery:

"I’d like to thank our witnesses for being with us today, and I very much look forward to hearing their testimony on the Terrorism Risk Insurance Program.

"This program was created in the aftermath of tragedy. After the events of September 11th, 2001—the risk of terrorism suddenly became all-too-real for many Americans.

"On that terrible day, the unthinkable happened, and the world forever changed.

"After the terrorist attacks of September 11th, terrorism risk—which was previously something that had been incorporated directly into the underwriting of commercial property and casualty insurance—seemed like a risk far more difficult to quantify and underwrite.

"As a result, the federal government stepped in with what was initially proposed as a temporary federal reinsurance program.

"The Terrorism Risk Insurance Program was created in November of 2002, and it has since been reauthorized four separate times—in 2005, 2007, 2015 and again in 2019.

"The next expiration of the Terrorism Risk Insurance Program is coming at the end of 2027. That may seem distant, but the reality is that terrorism risk contracts typically extend for one year.

"As we approach 2026, it makes sense to begin conversations on what a TRIA reauthorization should look like.

"For the members of our Subcommittee, this hearing is a first step in the reauthorization process and an opportunity to learn more about the Terrorism Risk Insurance Program.

"We need to know how the program has changed over time, what the program does well, and where it can be improved as we begin considering a reauthorization.

"I have two priorities on this issue:

1. To work quickly to provide the certainty required for insurers and insureds to continue providing terrorism risk insurance at a reasonable cost; and
2. To ensure that we work to mitigate taxpayers’ exposure in this program.

"Since the Terrorism Risk Insurance Program was created in 2002, we have been fortunate: there has never been a certified act of terrorism by the Department of the Treasury, nor has there been an events that would have reached the Terrorism Risk Insurance Program’s financial trigger.

"We of course hope that no future events ever trigger TRIA in this country. However, TRIA’s value is not just in direct responses to terrorism events.

"The program makes it easier to have an operating market where entities can purchase insurance that covers terrorism risk, and a well-functioning insurance market makes it possible for entities of all kinds to purchase insurance against terrorism risks.

"The Terrorism Risk Insurance Program helps our economy bounce back in the event of an attack, and it provides market stability and peace of mind in the interim.

"I look forward to hearing from our expert panel today on the Terrorism Risk Insurance Program, and I yield back."