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AIA Cites New RAND Study as Further Evidence that TRIA Must be Reauthorized

AIA CITES NEW RAND STUDY AS FURTHER EVIDENCE THAT TRIA MUST BE REAUTHORIZED

WASHINGTON, D.C., March 6, 2014 – J. Stephen (“Stef”) Zielezienski, senior vice president and general counsel for the American Insurance Association (AIA), issued a statement in response to a new RAND study that analyzed the national security and marketplace benefits of the Terrorism Risk Insurance Act (TRIA).  The report, “National Security Perspectives on Terrorism Risk Insurance in the United States” released today by the RAND Corporation, confirms that allowing TRIA to expire could have negative consequences for U.S. national security.  Support for the study was provided by the property-casualty insurance industry and major business groups, including AIA.

The Terrorism Risk Insurance Act (TRIA) was first authorized in 2002 following the terrorist attacks 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.

Mr. Zielezienski’s statement follows:

“The RAND report correctly concludes that TRIA is vital to our nation’s economic security as terrorism remains a real threat.  Given the fundamental role that TRIA plays in providing market stability and an orderly post-event recovery, it deserves prompt reauthorization by Congress.

“Terrorism risk continues to present unique challenges for businesses of all sizes across the U.S. The unpredictable nature of terrorism, an intentional act by those who are determined to inflict maximum loss, makes it a difficult risk that requires a public-private partnership like TRIA to provide the certainty necessary for a private market to function.  The program protects taxpayers through its recoupment mechanism and insurer retentions, with the government only playing a role where there are catastrophic terrorism losses. 

“The market is already experiencing some uncertainty given the program is currently set to expire at year’s end.  TRIA’s reauthorization is required in order to restore and maintain stability in the commercial insurance markets.

“AIA thanks RAND for its thorough review of the program.  The study serves as additional affirmation that TRIA remains an essential component of our national economic security.”

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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 320 companies, collectively writing more than $125 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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