"The findings from the surveys of insurers and policyholderspoint to the success of TRIA in achieving its short term goals,"Snow told the panel of US representatives, referring to studiesinvolving commercial property and casualty insurers Treasury reliedupon to complete the aforementioned report. "While we don't ascribea direct causal effect to TRIA, we note that insurer financialstrength has improved substantially over this period. Moregenerally, TRIA allowed both insurers and policyholders time toadjust to the post-September 11th view of terrorism risk." Snowindicated that, as per the survey, about 66% of commercial propertyand casualty insurance policies written in 2004 included terrorisminsurance coverage as opposed to 60% in 2002.

With regard to the impact that the failure to extend TRIA willhave on the commercial real estate industry, however, many groupsoppose Treasury's position and advocate a limited renewal of thelegislation to allow time to craft a long-term solution; pendingbills in the House and the Senate propose a two-year renewal. "Lastweek's horrific events in London are a stark reminder about theevolving nature of terrorist activity around the world, and theincreasing difficulty that private insurance markets face in tryingto quantify and price the risk of terrorism--let alone bear theresulting devastation," Real Estate Roundtable President and CEOJeffrey D. DeBoer tells GlobeSt.com. "This week's hearings are animportant step in the legislative process and, once concluded,should pave the way for the committees to focus on the details ofhow a future terrorism insurance program should look."

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