House To Examine TRIA Renewal Options

WASHINGTON–What should be included in an extension of the Terrorism Risk Insurance Act will be the subject of a hearing Tuesday by a House panel.

Rep. Paul Kanjorski, D-Pa., chairman of the Capital Markets, Insurance, and Government Sponsored Enterprises Subcommittee of the House Financial Services Committee, said the hearing is being held so committee members can examine policy choices Congress will need to take into account as it considers renewing the law, which expires Dec. 31.

“During the hearing, we will hear the opinions and ideas of experts on the ways that we can ensure the continued availability of insurance to protect against terrorism risk and options for better safeguarding our nation's economic security,” Rep. Kanjorski said.

Officials of the National Association of Mutual Insurance Companies said a key part of a TRIA renewal bill is ensuring that small- and medium-sized insurers participate, since they represent a significant percentage of the U.S. insurance marketplace.

Marliss Browder, a NAMIC senior federal affairs director, said final legislation should include an event trigger not to exceed $50 million–half of the current $100 million trigger–and that individual company deductible should not exceed the current 20 percent level.

“These provisions will enable small- and medium-sized insurers to afford reinsurance costs, which would otherwise be too expensive,” Browder said.