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AIA Calls for Swift Action on House TRIA Reauthorization Bill

AIA CALLS FOR SWIFT ACTION ON HOUSE TRIA REAUTHORIZATION BILL

WASHINGTON, D.C., June 16, 2014 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), issued a statement in response to the release of the TRIA Reform Act of 2014. Authored by Rep. Randy Neugebauer (R-TX), chairman of the House Financial Services Committee’s Housing and Insurance Subcommittee, the bill would reauthorize the Terrorism Risk Insurance Act (TRIA) for five years.

Ms. Pusey’s statement follows:

“The introduction of this bill adds to the growing momentum behind TRIA’s reauthorization in both the House and Senate.  We urge the Committee to swiftly mark up the TRIA Reform Act and move it to the House floor for a vote before the August recess. 

“TRIA is an effective partnership between private market insurers and the federal government that provides for an orderly economic recovery in the event of a terrorist attack.  The program maximizes private market risk bearing while protecting taxpayers at every step.  By placing the financial recovery on the private market in all but the most catastrophic of attacks, TRIA protects the federal government and taxpayers from this potential exposure.   

 “We do however remain concerned with certain provisions of the bill that could lead to decreased market capacity.  Most notably, the creation of a bifurcated approach for nuclear, biological, radiological and chemical (NBCR) attacks vs. conventional attacks falsely assumes that the insurance market operates based on the same distinctions.   Differentiation based on the type of event introduces needless complexity, creating potentially adverse consequences under the program and insurance market capacity. We are also concerned about the steep increase in the program trigger and co-share, which could also lead to a reduction in capacity.     

“We are very encouraged by the broad bipartisan support and persistent attention that TRIA has received in both chambers of Congress this session.  AIA is pleased that House Financial Services Committee leadership is moving the legislative process forward.  We look forward to working with the Committee in the days ahead to pass TRIA reauthorization legislation that protects policyholders and taxpayers while ensuring the continued widespread availability of property-casualty insurance for terrorism risks.”

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.  The Senate Banking Committee unanimously passed S. 2244, which contains a seven-year reauthorization, out of the Committee on June 3.  The bill now awaits a vote by the full Senate.  

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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
(202) 828-7149
rwallen@aiadc.org

 

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