New York, NY – Tarique Nageer, Property Terrorism Placement and Advisory Leader at Marsh recently testified before the United States Senate Committee on Banking, Housing and Urban Affairs, on the importance of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which is scheduled to expire on December 31, 2020.
“Terrorism remains an evolving, expanding, and ever-present risk in the U.S., which underscores the importance of the Terrorism Risk Insurance Program and its role in ensuring the continued stability and health of the terrorism insurance markets,” said Mr. Nageer. “We cannot afford to be complacent with regards to the program’s reauthorization.”
“The breadth of clients purchasing terrorism insurance in the U.S. is considerable and comprised of companies across every sector of the economy, of all sizes, in big and small cities alike,” said John Doyle, President and CEO, Marsh. “These organizations depend on the program to thrive and protect their workforce. We strongly support the reauthorization of TRIPRA.”
Marsh’s recently released 2019 Terrorism Risk Insurance Report notes that education entities were the most frequent buyers of terrorism insurance in 2018. Hospitality, gaming, health care, life sciences, and nonprofits are in the top ten sectors buying coverage.
The report also notes that should Congress allow TRIPRA to expire without a replacement, it could create capacity shortfalls, especially for businesses with significant workers’ compensation accumulations.
“Uncertainty about TRIPRA’s future is already prompting insurers and terrorism insurance buyers to seek additional reinsurance limits and coverages, on the assumption that there will be limited capacity available in the private market,” said Emil Metropoulos, Workers’ Compensation & Terrorism Center of Excellence Practice Leader, Guy Carpenter, also a Marsh & McLennan firm.
Mr. Nageer added: “A seamless renewal process and robust reauthorization bill can help keep the terrorism insurance market viable and competitive for buyers and encourage decisions to be made with a full understanding of shifts in the nature of terrorism and how they can affect organizations and insurers.”
A copy of Mr. Nageer’s testimony can be found here.
Source: Marsh & McLennan