WASHINGTON (11/14/13)--The Terrorism Risk Insurance Act should be reauthorized "quickly, cleanly and for the long-term," ranking House Financial Services Committee Democrat Maxine Waters (D-Calif.) said during a Wednesday hearing.
TRIA, which requires property and casualty insurers to offer coverage for foreign acts of terrorism on U.S. soil and provides a federal backstop for that coverage, is scheduled to expire at the end of 2014.
"TRIA must remain in place to ensure a speedy recovery after an attack, to avoid market disruptions, and to protect schools, jobs and businesses," she added.
The National Association of Realtors, U.S. Chamber of Commerce, International Association of Amusement Parks & Attractions, Jewish Federations of North America, National Conference of Insurance Legislators, U.S. Conference of Mayors, American Hotel and Lodging Association, National Association of Mutual Insurance Companies, the International Council of Shopping Centers and every major national sports league and organization are among the groups supporting a TRIA renewal, Waters noted.
The Terrorism Risk Insurance Program Reauthorization Act of 2013 (H.R. 2146), which would extend TRIA coverage until Dec. 31, 2024, was introduced this May by Rep. Michael Capuano (D-Mass.). The bill has 42 cosponsors.
Wednesday's hearing, entitled "The Future of Terrorism Insurance: Fostering Private Market Innovation to Limit Taxpayer Exposure," featured testimony from:
Lloyd's of London Risk Management Director and General Counsel Sean McGovern;
Validus Reinsurance, Ltd. CEO Kean Driscoll;
Former South Carolina Director of Insurance Ernest Csiszar;
Fermat Capital Management, LLC Managing Principal Dr. John Seo; and
Insurance Information Institute President and Economist Robert Hartwig.