U.S. Senator Charles Schumer, D-N.Y., made clear to the TreasuryDepartment that renewal of the Terrorism Risk Insurance Act will beone of his top priorities for this Congress. 

In a question at the confirmation hearing of Treasury Secretarydesignate Jacob Lew, Schumer said that it was "vital" for his NewYork constituents that TRIA be extended.

Lew, in response, said he was not familiar with currentObama-administration policy on the issue, and that he would getback to Schumer with a written response.

Lew's confirmation hearing was held by the Senate FinanceCommittee.

Currently, the program will expire at the end of 2014 if it isnot renewed.

There are calls, especially by members of the more-conservativeHouse, that TRIA be allowed to expire because the private sectorshould be able to able to provide enough capacity to insure therisk of terrorism without federal involvement.

But, Schumer said TRIA is equal to flood insurance in importanceto New Yorkers. He said the private market could not provide thecapacity, at reasonable prices, to handle the risk. Schumer said,"There are a lot of tall buildings in New York, and terrorism isunpredictable."

In response, Lew said he was "certainly familiar with TRIA,"having been chief financial officer of New York University on Sept.11, 2011, and that, "I saw the need for it then."

But he said he is less familiar with the current need for theprogram.

Legislation extending the program for five years, until 2019,was introduced in the House Feb. 5, Rep. Rep. Michael Grimm, R, andCarolyn Maloney, D, both from New York, as primary sponsors.

From an industry perspective, Jimi Grande, senior vice presidentof Federal and Political Affairs for the National Association ofMutual Insurance Companies, says, "The TRIA program is one of themore unknown programs established as part of the national-securityresponse to the attacks of Sept. 11, 2001, as thankfully we haven'thad any catastrophic terrorism attacks since then. The program hasserved an important function, however, ensuring a private marketexists for terrorism coverage and fostering continued economicgrowth. NAMIC has called on Congress and the Administration to worktowards a swift reauthorization."