Terrorism Insurance Group Pushes Senate for Extension

CIAT just sent a letter to Sen. Richard Shelby, chairman of the Senate Banking Committee, encouraging the senator and his colleagues to expedite the passage of the Terrorism Risk Insurance Extension Act of 2005. The proposed legislation would postpone TRIA's expiration to the end of 2007.

"S 467 would extend the current TRIA program for a short period of time while creating a group of insurance and risk-management experts to work with the Presidential Working Group on Financial Markets to develop a longer-term solution," CIAT writes in the letter. CIAT is an organization of business insurance policyholders in industries ranging from real estate to entertainment.

Martin DePoy, CIAT spokesperson and vice president of government relations at the National Association of Real Estate Investment Trusts, tells GlobeSt.com that CIAT's calls for swift passage of S 467--as well as the US House of Representative's companion legislation, HR 1153--have not fallen on deaf ears. "There's strong bipartisan support among members of the House and Senate for an extension," DePoy says. "There remains work to be done to convince certain members, but we have facts to support the need for an extension. We have confidence that they will extend TRIA and come up with a long-term solution."

In the letter, CIAT notes: "[TRIA] has helped keep the economy going in the face of continued terrorist threats by ensuring that businesses across America can secure this essential coverage, saving countless jobs in the process. Second, it serves as an important tool to minimize the severe economic disruption that almost certainly will occur should there be a future terrorist attack of catastrophic proportion."

The clock is ticking on TRIA, however, so there is an increasing sense of urgency among the groups and organizations that consider the legislation a necessity. "We hope it won't come down to the end," DePoy says. "There would be significant economic dislocation resulting from an expiration--we're seeing a little of that already," he adds, referring to a contingent of business leaders currently seeking new or renewal policies who are running into exclusionary conditions and clauses based on TRIA's possible expiration.

"We need to have the Senate act quickly, and that would send a strong message to the House," he states. "We continue to work with all the members." The Senate Banking Committee has scheduled a hearing on TRIA for April 14.