US insurance industry leaders have praised Congress for its “swift action” to extend the Terrorism Risk Insurance Act (TRIA).

The Federal Government reinsurance backstop was established following the September 11 2001 attacks, as terrorism cover became unavailable or very expensive.

The Act was extended twice, but expired at the end of last year after efforts to pass new laws failed.

Congress made it an immediate priority when returning this year, with the House of Representatives passing the Terrorism Risk Reauthorisation Act 2015 by 416-5, and Senate by 93-4.

President Barack Obama signed the six-year extension into law on January 12. The program’s trigger will increase gradually from $US100 million to $US200 million ($126 million to $252 million), and the insurer co-share will rise from 15% to 20%.

American Insurance Association President and CEO Leigh Ann Pusey says the swift action has preserved a well-functioning private terrorism insurance marketplace.