Property and casualty insurance associations have commented on the recent passage of House Bill HR 2761, an extension of the Terrorism Risk Insurance Act, called the Terrorism Risk Insurance Revision and Extension Act of 2007.

“We believe the House made several improvements to the existing program that will increase the availability and affordability of terrorism insurance,” said Ben McKay, senior vice president, federal government relations for the Property Casualty Insurers Association of America in a release. “We also think as the legislation moves through the U.S. Senate further revisions should be made to make certain that the very foundation of the program is not undermined. In particular, expanding the TRIA program to require insurers to 'make available' coverage against attacks involving nuclear, biological, chemical, and radiological weapons of mass destruction is unwise in our opinion.”

NAMIC maintains that while the legislation is a step in the right direction, but they do not agree with all parts of the measure.

“We commend members of the House for advancing this critical piece of legislation,” said Marliss Browder, NAMIC's senior federal affairs director in a release. “While we wholeheartedly endorse many of the provisions in the bill, we remain concerned that the inclusion of a mandate for insurers to offer coverage for non-conventional weapons could jeopardize the ability of small and medium-sized insurers to offer terrorism coverage – to the ultimate detriment of policyholders.”

Some feel that the Terrorism Risk Insurance Act needed to be extended in order to take the pressure off of the private insurance market in the event of a catastrophic terrorist attack.

American Insurance Association President Marc Racicot commented on the U.S. House vote saying in a release, “A continued, vibrant federal terrorism risk insurance program remains critical to the national security and economic well-being of our nation for the foreseeable future. More than simply extending the existing program, this legislation takes on the unique challenge of providing some measure of insuring against nuclear, biological, chemical, or radiological terrorist threats.”

Interested in more terrorism news and in-depth articles? Head over to Claims' terrorism channel for more information.

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Insurance Community Comments on TRIA Legislation

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