U.S. insurance commissioners sign resolution in support of terrorism risk act

The National Association of Insurance Commissioners (NAIC) in the United States has passed a resolution supporting the reauthorization of the Terrorism Risk Insurance Act (TRIA), which is set to expire in December 2014.

“We strongly urge members of Congress to reauthorize this critical piece of legislation,” said NAIC president-elect and North Dakota Insurance Commissioner Adam Hamm. “In addition to providing essential coverage for commercial policyholders, this federal backstop remains an invaluable part of the industry’s ability to preserve its financial protection and maintain risk management.”

Signed into law in November 2002 in the aftermath of the 9/11 attacks, TRIA was established to provide economic stability by making terrorism coverage available to businesses. Congress reauthorized the program in December 2007.

The NAIC passed its resolution during a meeting of the Government Relations Leadership Council during the Summer National Meeting in Indianapolis over the weekend.

In a statement Monday, the Property and Casualty Insurers Association of America applauded the NAIC’s move.

“Significant sectors of our economy are dependent on the availability of terrorism insurance and this coverage would not be available for those risks that need it most without TRIA,” said the statement from the association, which represents more than 1,000 member companies.

Also Monday, the American Insurance Association praised NAIC for its resolution.

“TRIA provides much needed predictability for an orderly economic recovery after an event,” the organization’s president and CEO Leigh Ann Pusey noted. “Thanks to the certainty that the program provides, businesses are able to make decisions and free up capital for business expansion and economic growth.”