RIMS sets 2026 legislative agenda with focus on litigation funding, terrorism insurance and flood reform

RIMS has identified its legislative priorities for 2026, setting the agenda for its annual Legislative Summit in Washington, DC on 18–19 March.

The priorities were developed by the Society’s Public Policy Committee, which evaluates legislative, regulatory and legal developments that affect risk professionals’ ability to implement insurance and mitigation strategies within their organisations.

This year’s agenda reflects mounting concern around litigation exposure, catastrophe financing and federal backstops that underpin key insurance markets.

Third-party litigation funding

At the top of the list is third-party litigation funding (TPLF), an issue that has moved rapidly up corporate risk agendas as nuclear verdicts continue to challenge liability programmes.

TPLF allows outside investors to finance plaintiffs’ lawsuits in return for a portion of any settlement or award. According to RIMS, these arrangements can exacerbate legal exposures by increasing the scale and persistence of claims.

The Society is advocating for greater transparency around funding arrangements and is urging Congressional leaders to prevent foreign third parties from financing US civil litigation.

For risk managers, the issue intersects directly with liability pricing, reserving and claims volatility. Transparency requirements, if introduced, could affect how insurers assess litigation risk and structure coverage.

Terrorism Risk Insurance Act renewal

RIMS will also prioritise the reauthorisation of the Terrorism Risk Insurance Act (TRIA), the federal law originally signed in 2002 that created a public–private backstop for insurance claims related to acts of terrorism.

Terrorism Risk Insurance Act is currently set to expire in December 2027.

RIMS says it will advocate for TRIA’s continued value and the “critical role it plays in ensuring the affordability and availability of insurance in major cities while also establishing a public/private insurance response to catastrophic losses resulting from terrorism”.

Although expiry is more than a year away, previous reauthorisation cycles have shown that market uncertainty can begin well in advance of deadlines. For organisations with large urban footprints or terrorism-exposed assets, legislative clarity may influence renewal negotiations and long-term planning.

National Flood Insurance Program

Flood insurance reform is also on the 2026 agenda.

RIMS will continue to call for long-term reauthorisation of the National Flood Insurance Program (NFIP), which remains the primary source of flood insurance coverage for residential properties in the US.

National Flood Insurance Program supports property owners and developers, encourages private insurers to remain in the flood market and funds flood zone mapping and building code updates.

The programme has faced repeated short-term extensions in recent years. For risk managers with US property exposure, legislative uncertainty can affect pricing, availability and planning around flood resilience investment.

Nonprofit tax reform

The fourth priority relates to potential tax reform affecting tax-exempt organisations.

RIMS said that preliminary discussions last year included the possibility of a 21% corporate tax rate on all net, non-donation income for tax-exempt organisations. Although those discussions did not materialise, the Society has joined the Steering Committee of the Community Impact Coalition, led by ASAE, to protect the nonprofit community and educate Congress on the sector’s societal benefits.

While the issue is narrower in scope than terrorism or flood reform, it signals concern about broader fiscal policy shifts that could affect the operating environment for associations and nonprofit entities.