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U.S. insurance, risk management industry disappointed at failure to pass TRIA


December 17, 2014   by Canadian Underwriter


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Property and casualty insurance industry groups in the United States are expressing disappointment and frustration at the Senate’s non-passage of legislation to reauthorize the Terrorism Risk Insurance Act (TRIA).

“AIA is incredibly disappointed that the Senate failed to pass the House-approved (417-7) six-year TRIA reauthorization bill prior to adjourning,” Leigh Ann Pusey, president and CEO of the American Insurance Association said in a statement issued on Tuesday.

The group says that Congress has failed American taxpayers and  the economy.

Related: TRIA extension bill ensures small & mid-sized insurers ‘not forced out of the market,’ New York congress member says

“Without TRIA in place on Jan. 1, insurers will be forced to assess their exposures,” she said.

“The program’s lapse will significantly jeopardize the terrorism insurance marketplace that currently protects our nation’s economy against major acts of terrorism. We strongly urge the new Congress to take up the House-Senate negotiated TRIA reauthorization provision as its first item of business when it returns in January in order to minimize marketplace disruptions.

“A failure to quickly reauthorize TRIA would be a failure to protect our economy from terrorism.”   

On Wednesday, RIMS also expressed disappointment at the lack of extension.

“We are extremely disappointed that Congress failed to pass an extension of TRIA, despite strong bipartisan support,” the organization’s president, Carolyn Snow, said in a statement.

“The program’s expiration will have many negative repercussions for commercial insurance consumers, the countless organizations they represent and the U.S. economy as a whole,” she said.

“Congress allowed a program to expire that has proven to be a success. Since its inception, TRIA has stabilized the marketplace by providing adequate capacity at affordable rates. Its expiration will almost certainly cause rates to rise, placing many lending agreements in jeopardy and forcing some organizations to self-insure or simply go without.

“RIMS and many other organizations have been pushing Congress to pass an extension for the past two years but Congress senselessly ignored those concerns and waited until the very last moment. This delay has ultimately led to the worst possible outcome.

“We urge both the House and Senate to act swiftly on this issue as soon as they convene in January. The longer this lapse in coverage is allowed to continue, the more the U.S. economy will suffer.”

RIMS noted that its External Affairs Committee and members will continue to promote the value of TRIA to Congress when it returns to work on Jan. 6, 2015.

“It is unconscionable that the U.S. Senate would adjourn without finishing their job and reauthorizing a long-term Terrorism Risk Insurance Act (TRIA) when the threat of a terrorist attack against the United States is at the highest level it has been in a decade,” David A. Sampson, president and CEO of the Property Casualty Insurers Association of America also noted in a statement Wednesday.

“TRIA plays a vital role in our national economic security. If a massive attack occurs before TRIA is reauthorized, there could be no terrorism insurance coverage or taxpayer protection. PCI is profoundly disappointed by the dysfunction in Washington and we urge the next Congress to address a long-term reauthorization of TRIA immediately when they convene in January.”


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