The Property Casualty Insurers Association of America (PCI) again urged the long-term reauthorization of the Terrorism Risk Insurance Act (TRIA), stressing its importance to businesses and the economy, at the National Association of Insurance Commissioners’ (NAIC) Summer National Meeting.
Enacted in November 2002, TRIA established a risk-sharing structure that allows the federal government and the insurance industry to share losses in the event of a major terrorist attack. The current iteration of TRIA, the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), expires at the end of 2014.
“PCI is a strong supporter of a long-term reauthorization of the Terrorism Risk Insurance Act as it is critical to the stability of the American economy,” said Robert Gordon, SVP, policy development and research for PCI. “For the past decade, TRIA has helped to ensure that terrorism coverage is available especially in markets that are critical to the economic recovery and job creation. However, as the business community begins to negotiate 2014 insurance contracts with coverage periods that will extend into 2015, we believe it is important for the property and casualty industry and regulators to consider the many questions that will arise leading up to TRIA’s possible expiration or extension. We applaud the NAIC for engaging in the dialog and attempting to anticipate and prepare for the challenges that lie ahead.”
Also, a resolution that supports congressional reauthorization of TRIA was adopted today by the NAIC's Government Relations Leadership Council at the same Summer National Meeting. American Insurance Association President and CEO Leigh Ann Pusey quickly released a statement supporting this move. Despite the seeming concensus among industry groups, there are outliers.
In May, the Consumer Federation of America (CFA) said the renewal of TRIA may not be necessary, given the industry surplus of nearly $600 billion < http://www.insurancenetworking.com/news/industry-org-responds-to-doubts-about-tria-32277-1.html > . The Insurance Information Institute responded by emphasizing the stability TRIA continues to provide.
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