For optimal functionality and an enhanced user experience, the following browsers are recommended when using aiadc.org: Chrome (version 4x), Mozilla Firefox (version 3x) or Internet Explorer (IE) versions 9, 10 & 11. Some of our site’s features may not function as you might expect if you are using an older browser (IE7 or IE8).

AIA Cites Rand Study on TRIA's Benefits to Workers' Compensation Markets As Additional Evidence TRIA Must Be Reauthorized

AIA CITES RAND STUDY ON TRIA’S BENEFITS TO WORKERS’ COMPENSATION MARKETS AS ADDITIONAL EVIDENCE TRIA MUST BE REAUTHORIZED

WASHINGTON, D.C., May 7, 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 analyzes the potential negative effects on the workers’ compensation market if the Terrorism Risk Insurance Act (TRIA) is allowed to expire.  The report, “The Impact on Workers' Compensation Insurance Markets of Allowing the Terrorism Risk Insurance Act to Expire” released today by the RAND Corporation, confirms that allowing TRIA to expire could have negative economic consequences for business, states and insurers.  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 latest RAND report highlights the importance of TRIA’s reauthorization to workers’ compensation coverage.  TRIA plays a vital role in helping to maintain well-functioning workers’ compensation markets throughout the nation.   

“Unlike other insurance lines covered by TRIA, businesses and insurers have less flexibility when it comes to workers’ compensation coverage for terrorism risk, which nearly all U.S. employers are mandated to provide.  Absent TRIA’s protections, insurers would be forced to manage their terrorism risk exposure for a line of insurance that provides no flexibility for the parties to limit or exclude coverage.  In turn, those individual decisions to provide or limit capacity could force employers to seek coverage in state residual markets—thereby leaving states and their taxpayers exposed in the event of a catastrophic terror attack.

“TRIA remains 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, coupled with the program’s taxpayer protections, it deserves prompt reauthorization by Congress.”

###

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.


AIA tweets

#Insurtech leaders discuss user experience, #drones are a game changer, & more in First Read today. Dont want to https://t.co/JF0Vdf1DCA

24 Minutes Ago

Congrats, @MunichRe_US - it's well-deserved! https://t.co/pViUK0zPGZ

19 Hours Ago

AIAs Ron Jackson on why insurance consumers need #AOB reform in #Florida in 2018. @SunSentinel @floir-comm https://t.co/WYfDOeP4RP

20 Hours Ago

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

 

AIA MEDIA

media_alert_promo_300.jpg

AIA_slider_First_Read_02_300.jpg