TRIREA Gets Insurance Buyer Backing

WASHINGTON–Two groups representing purchasers of commercial insurance are voicing strong backing for the House measure passed last week that would extend government support to insurers after major terrorism losses.

Both organizations are urging the Senate to act promptly on the bill, which passed the House Thursday on a 312-110 vote. Without an extension, the Terrorism Risk Insurance Act program will expire Dec. 31.

The Risk and Insurance Management Society said it strongly supported the Terrorism Risk Insurance Revision and Extension Act (TRIREA), H.R. 2761, to extend the current TRIA extension legislation for 15 years and make other changes to the program.

RIMS said a provision in the bill structuring nuclear, biological, chemical and radiation coverage so that it offers “support and flexibility for smaller insurers” and the elimination of the distinction between foreign and domestic terrorism” is an improvement to the current backstop.

“RIMS is pleased that the bill, as passed by the U.S. House of Representatives, makes significant improvements to the current TRIA program, particularly the 15-year extension, which will encourage continued economic development by providing stability to the terrorism insurance issue for years to come,” said Janice Ochenkowski, RIMS president and managing director of Jones Lang LaSalle Incorporated.

“We are encouraged to see that 88 Republicans voted for the bill, showing that the House was able to achieve bipartisan support for the difficult issues involved,” she said.

“We urge the passage of this bill when it comes before the full U.S. Senate and look forward to working with the senators and their staff throughout the legislative process,” Ms. Ochenkowski added.

The Coalition to Insure Against Terrorism (CIAT), a broad-based coalition of business insurance policyholders representing a significant segment of the nation's GDP, commented that the House in passing the bill with a 15-year extension had made major improvement to the program, which was last extended for a two-year period.

Martin DePoy, who is coordinator of the CIAT Steering Committee, said extending the program for 15 years would give businesses the ability to plan, finance and execute large-scale projects, which is essential to support economic growth.

“Extending TRIEA is a vital part of our nation's economic preparedness against terrorism, as well as an essential element of our nation's economic security,” Mr. DePoy said.

“Equally important, having a federal insurance backstop in place in advance allows for the timely and orderly payout of claims to the victims of terrorism after an attack, thereby reducing or eliminating ultimate taxpayer exposure,” Mr. DePoy said.

“CIAT is grateful for the leadership the House has shown in passing TRIREA, and we look forward to the Senate's consideration of this critical issue,” Mr. DePoy said.