Washington, DC – Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America (PCI) recently issued the following statement on the introduction of legislation to reauthorize the Terrorism Risk Insurance Act (TRIA), H.R. 4871 the “TRIA Reform Act of 2014”.
“PCI commends House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Subcommittee Chairman Randy Neugebauer (R-TX) for advancing the debate by introducing legislation to reauthorize TRIA. We hope the Committee and the full House act swiftly so that the Congress can send TRIA legislation to the President for his signature before the August recess,” said Wienecke.
“The legislation aims to protect taxpayers and preserve America’s economic resiliency plan in response to catastrophic attacks against our country, while acknowledging the private sector’s limitations in predicting the frequency of attacks and severity of attacks,” continued Wienecke.
“PCI and its member companies applaud several improvements that have been made in the legislation. PCI is particularly thankful that the legislation provides for a reasonable reauthorization duration, continues protection for domestic as well as foreign terrorist attacks, maintains the 20% insurer deductible, and incorporates very important technical corrections to the terrorism certification process, and PCI appreciates that thresholds for nuclear, radiological, biological, chemical (NBCR) remain unchanged in the Committee’s legislation, which is especially important for workers compensation carriers.
“Since the beginning of the deliberations to reauthorize TRIA, PCI has focused on ensuring that our members maintain the ability to provide terrorism risk insurance to meet the needs of our customers and the marketplace. Understanding that legislating is the art of the possible, we call on Congress to ensure that any increases to the trigger and co-share not be so high or so steep that they inhibit the availability and affordability of terrorism insurance. Ninety-eight percent of the small and medium-sized insurers that provide TRIA protection are from Main Street and could face review by rating agencies that may result in downgrades to some companies if TRIA’s existing carefully crafted framework is significantly altered,” said Wienecke
“Passage of TRIA reauthorization legislation that provides taxpayer protections, allows the industry to meet the needs of its customers, and protects America’s economic and security interests is in our national interest. We look forward to continuing our efforts with the Committee, the House, and the Senate to finalize legislation and send it to the President for his signature before the August recess,” concluded Wienecke.
Source: PCI