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Member, Beacon International Group, Ltd.
Insurance industry regulators and associations are renewing calls for reauthorization of the Terrorism Risk Insurance Act.
At its summer national meeting last weekend in Indianapolis, the government relations leadership council of the National Association of Insurance Commissioners approved a resolution urging Congress to reauthorize the terrorism insurance federal backstop, which is set to expire on December 31, 2014.
Leigh Ann Pusey, president and CEO of the Washington-based American Insurance Association, praised the NAIC's action.
“TRIA's reauthorization is necessary as the program remains an essential component of our nation's economic security,” Ms. Pusey said Monday in a statement. “Since its inception in 2002, TRIA has stabilized the market and made terrorism risk insurance coverage widely available.”
Elsewhere, Robert Gordon, senior vice president of policy development and research for Chicago-based Property Casualty Insurers Association of America, said it is important for the industry to prepare for the challenges associated with winning an extension of TRIA.
“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,” Mr. Gordon said Sunday in a statement. “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.”
TRIA was first authorized in 2002 and subsequently reauthorized in 2005 and 2007.