U.S. Sen. Joe Lieberman, the independent from Connecticut, told independent agents here last week he supports renewal of the Terrorism Risk Insurance Act and would like to see it made permanent.
"Another terror attack can come at any time, anywhere [in the United States], and the loss could cripple the American insurance industry," he said here during the Independent Insurance Agents and Brokers of America's annual Legislative Conference and Convention.
He said while he supports extension of the federal reinsurance backstop, he felt it was time for the program to be made permanent. He also said TRIA should be expanded to cover chemical, nuclear, biological and radiological events.
Sen. Lieberman said TRIA has done what it was intended to do–provide a backstop and split the risk between the private sector and government.
He also noted a Treasury Department report that said half of all insurers would stop writing terrorism risk if the program is not renewed, underscoring the continued need for the program.
"We need to do all we can to protect and deter another attack, but we also must be able to pick ourselves up after it," Sen. Lieberman noted. "Part of any recovery effort must come from a healthy and stable insurance industry."
Sen. Lieberman said he is also supportive of the creation of a commission to consider legislation establishing a national catastrophe insurance plan, calling the study "a great idea." He added that any program that would help service policyholders more quickly with their claims would "serve the customers and the country."
Any legislation will need the cooperation of both Democrats and Republicans, he noted as he railed against the extreme ideological arguments of the parties, which both fail to compromise to get laws passed.
While Democrats and Republicans fight over whose side should win, the public does not benefit. "What is lost is America's side," he added. "It is time to start working together."
Sen. Lieberman said the recent election was a clear indication the American public wants to see an end to the partisan politicking. "It is time to start working together," he added.
After losing the Democratic primary last year for his Senate seat, Sen. Lieberman won re-election as an independent. He continues to side with the Democrats on many issues.
Also addressing the IIABA last week was House Minority Whip Roy Blunt, R-Mo., who said TRIA is an important issue, and that consideration should be given to extending the program to group life insurance.
He said making TRIA permanent was a good idea that needed to be discussed further, but stopped well short of endorsing the move. He indicated that since many state regulators are involved, their views would have to be heard.
He also appeared to endorse the status quo of political partisanship, saying, "We don't want to be too partisan, but we do not want to be too na?ve."
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