WASHINGTON–Sen. Mark Warner says Congress should considerreauthorizing the Terrorism Risk and Insurance Act for 10years or longer because it is in the long-term economic interest ofthe nation.

Speaking the morning of April 18 during IndependentInsurance Agents & Brokers of America Legislative Conferenceand Convention here, Warner says recent terrorist bombing ofthe Boston Marathon demonstrates the need for the extension ofTRIA.

He says there are incidents in the world today which “no amountof actuarial studies” will support the underwriting of terrorisminsurance for the construction industry. To ensure the nation'seconomic progress he says, “We have to have that kind of protectionon the books.”

“Count me as one of those who will advocate for that on theSenate Banking Committee,” says the senator, a Democrat fromVirginia.

TRIA expires at the end of next year, but Warner says now is thetime to begin discussing reauthorizing the program. He urged agentswhen visiting their elective legislative representatives onCapitol Hill to emphasize that extending TRIA “is in the long termeconomic interest of the country.”

Congress authorized the backstop program shortly after 9/11 atthe urging of the business community as it became increasinglydifficult to secure the liability coverage to protect constructionprojects in large cities.

The President and CEO of the IIABA, Robert Rusbuldt, in aninterview after the senator's speech, says if TRIA is allowed toexpire insurers are most likely to impose “major exclusions” ininsurance policies for acts of terror.

“If you are writing anything, whether it is an NFL football teamor an iconic property like the Empire State Building, or any smallbusiness in the building, or surrounding it, they will needterrorism coverage,” says Rusbuldt. Failure to renew theact “will have a ripple effect in the insurance marketplaceand businesses of all sizes.”

He says he believes there will be “modifications” to the currentauthorization, but does not know what they will be. While someconservative Republicans believe there should be no governmentbackstop, others in banking, real estate and construction “will behit if TRIA is not passed in some manner.”

“It is way beyond the insurance industry,” he says. “It is amajor economic issue for our country.”

In a statement issued today in response to Warner's comments,the American Insurance Association says it supports reauthorizationof the program and will work for bipartisan support for itspassage.