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AIA Calls for Reauthorization of TRIA in Advance of Senate Banking Committee Hearing

AIA CALLS FOR REAUTHORIZATION OF TRIA IN ADVANCE OF SENATE BANKING COMMITTEE HEARING

WASHINGTON, D.C., February 24, 2014 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), issued the following statement in advance of the U.S. Senate Banking, Housing and Urban Affairs Committee’s hearing entitled “Reauthorizing TRIA: The State of the Terrorism Risk Insurance Market, Part II.” 

The Terrorism Risk Insurance Act (TRIA) was first authorized in 2002 following the terrorist attack of September 11, 2001. It was subsequently reauthorized in 2005 and 2007 with broad bipartisan support, and is scheduled to sunset on December 31, 2014.

Ms. Pusey’s statement follows:

“Terrorism risk insurance is widely available today because of the successful approach provided by TRIA.  It protects our nation’s economy from potential disruption while providing for an orderly recovery following an event.  TRIA has served our nation well and deserves a timely reauthorization.

“As Congress considers TRIA’s reauthorization, lawmakers rightly want to explore whether the private sector has the financial ability to cover large-scale losses that result from a terrorist attack absent the partnership with the federal government established under TRIA.  The simple answer is no.

“Private reinsurance capacity for terrorism remains in the $6 billion to $10 billion range.  This is far short of the approximately $30 billion in exposure retained by insurers writing terrorism coverage.  TRIA’s public-private ‘shared loss’ partnership has made it possible for commercial insurers to provide commercial property-casualty coverage to U.S. businesses and to individually manage terrorism exposures without compromising financial solvency. 

“TRIA protects more than just policyholders, it protects taxpayers too because any federal funds expended on terrorism losses can ultimately be repaid under TRIA’s recoupment mechanism. 

“AIA will be working in the weeks ahead to achieve broad bipartisan support for the reauthorization of TRIA.  The program’s successful partnership enables a stable terrorism risk insurance market and deserves prompt renewal.”

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The American Insurance Association (AIA) is the trade association for today’s leaders in the property-casualty insurance industry. Our members work each day to protect the American Dream, whether that’s a house, car, business or otherwise. Now more than 150 years old, AIA has an unparalleled record of advocating on state, federal and international issues for insurers and their customers. 

Our membership is comprised of more than 330 companies, collectively writing more than $134 billion in premiums each year.

We have the experience of a veteran organization coupled with the innovative ideas that drive our industry forward. AIA is leading the insurance industry into the second half of the 21st Century… today.


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Media Contacts

Maggie Seidel
VICE PRESIDENT, PUBLIC AFFAIRS
(202) 828-7196
mseidel@aiadc.org

Rachel Wallen
PUBLIC AFFAIRS MANAGER & MEDIA CONTACT
(202) 828-7149
rwallen@aiadc.org

 

 

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