PIA Submits Testimony on Terrorism Insurance
With the Terrorism Risk Insurance Program (TRIP) needing to be reauthorized before it expires next year, Congress and the industry are starting to focus on the issue.
On Tuesday, June 18th, the Senate Banking, Housing and Urban Affairs Committee held a hearing on renewing TRIP prior to its scheduled expiration on December 31, 2020. PIA National
submitted testimony in support of renewing the backstop, known initially as the Terrorism Risk Insurance Act (TRIA), and was instrumental in its creation in 2002, shortly after the terrorism attacks of Sept. 11, 2001, and successfully worked with Congress to secure a long-term reauthorization of TRIA in early 2015. PIA strongly supports a long-term renewal of TRIP.
“The TRIP fills a large void in the market and provides a level of certainty in an uncertain time,” stated PIA in its testimony. “It is critical that Congress extend the TRIP before it expires on December 31, 2020. PIA supports an extension of the TRIP well before its expiration to provide stability to policyholders and the markets.”
The federal program acts as a financial backstop for the property/casualty industry to help drive down the cost of terrorism coverage. Before the backstop kicks in, individual events must be certified as acts of terror by the Secretary of State, the Treasury Secretary and the U.S. Attorney General. American Property Casualty Insurance Association (APCIA), the National Association of Mutual Insurance Companies (NAMIC), the National Council of Insurance Legislators (NCOIL) and Marsh are among the groups urging quick renewal.