Industry reactions to nonrenewal of Terrorism Insurance bill
In a surprising move, the terrorism insurance bill died on the Senate floor last week, despite widespread support.
"Virtually no member of Congress — Republican or Democrat — wanted the Terrorism Risk Insurance Act of 2002 to lapse at the end of this year. The Senate had passed a revamped version in July, 93-4. The House passed a new compromise last Wednesday, 417-7. Then the bill died — over an objection by a single senator, in large part to a provision unrelated to the federal financial backstop for terrorism recovery."
See more: Congressional Roadblock Upends Market for Terrorism Insurance
The news stunned the insurance industry. PropertyCasualty360 compiled reactions to the news about Congress' failure to renew TRIA. Shock, dismay and disappointment: P&C insurance industry's reaction to TRIA news. The article includes reactions from National Association of Professional Insurance Agents (PIA); Independent Insurance Agents & Brokers of America (IIABA or the Big “I”); Insurance Information Institute; The Risk Management Society (RIMS); Property Casualty Insurers Association of America (PCI); American Insurance Association (AIA); The National Association of Mutual Insurance Companies (NAMIC); Coalition to Insure Against Terrorism (CIAT); NAIOP, the Commercial Real Estate Development Association; National Association of Insurance and Financial Advisors (NAIFA)
This quote from Dr. Robert Hartwig, president of I.I.I. seemed particularly timely:
“Terrorism insurance policies are going to lapse in 2015, and insurers will be under no obligation to renew them, adversely impacting the construction, energy and real estate industries, among others.
For instance, a theatre owner hosting a controversial movie premiere on Christmas Day may have insurance coverage for losses triggered by an act of terrorism but this same business might not have it if a comparable attack were to occur on New Year’s Day.”
The Property Casualty Insurers Association of America (PIAAA) also compiled a roundup of industry leaders' reactions to the expiration of the Terrorism Risk Insurance law (PDF). The roundup includes reactions from Deloitte; Fitch Ratings; Willis; Douglas Durst, a post 9-11 NYC developer; Air Worldwide; and Aon.
In November, James T. Brett, president and CEO of The New England Council, wrote an article about why the re-authorization of terrorism risk insurance is essential for New England.
What does TRIA denial mean for workers’ compensation?
Insurance will be available after TRIA expiration, but cost will be a factor
TRIA Rides Off Into the Sunset
Congress Must Act in 2015
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