Celebrating 30: TRIA’s Impact
- Oct 05, 2017
As Commercial Property Executive celebrates its 30th anniversary, we’re taking a look back at the most significant events in commercial real estate’s history. Stay tuned for our weekly posts highlighting these critical points, and follow along with us on our site and your favorite social media channels using the hashtag #CPETurns30.
The 9/11 terrorist attacks had a profound impact on the world, bringing up questions on building safety, security and insurance. Much of the financial cost of the attacks fell on reinsurers, who largely withdrew from the market of terrorism coverage, leaving many businesses unable to purchase insurance protection again future attacks. In response, then President George W. Bush signed into law the Terrorism Risk Insurance Act (TRIA) on Nov. 26, 2002, providing a federal backstop for certain U.S. property and casualty insurance losses from a major terrorist attack, requiring insurance carriers to take on more of the financial risks associated with an attack. The act was extended for two years in December 2005 and again in 2007, before the The Terrorism Risk Insurance Program Reauthorization Act expired in December 2014. In January 2015, the Terrorism Risk Insurance Program Reauthorization Act of 2015 was signed into law, extending TRIA through 2020. The extension avoided a serious credit fallout for the commercial real estate industry, including billions of dollars in stalled or canceled transactions and repercussions for investors, banks and the broader economy.