X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-While the aftermath of Hurricane Katrina has kept Congress occupied, the Terrorism Risk Insurance Act of 2002 will still sunset on Dec. 31. Cosette R. Simon, senior vice president, government and industry relations, Swiss Re Life & Health America Inc., tells GlobeSt.com that even though time is winding down, she expects a two-year renewal will be put in place.

“Congress’ interest has been elsewhere, appropriately so,” Simon says. “While I wish it [Hurricane Katrina] didn’t happen, it’s a real-life example of why TRIA is needed. Insurers haven‘t priced for terrorism. We‘re there to pay for floods, hurricanes, not for the unpredictable.”

In a white paper, Swiss Re stressed the importance of renewing TRIA. And the Coalition to Insure Against Terrorism was among those groups testifying before Congress over the summer to stress the importance of renewing TRIA. This was in response to a June 30 US Department of the Treasury’s report which concluded that the insurance industry is now capable of providing terrorism insurance on its own.

“Timing is critical. We will have some sort of ‘Son of TRIA,’” Simon adds. “There’s just less time to build consensus.” Aspects of TRIA she says should be amended in a number of ways including upping the $5-million trigger, adding group life to the mix and including domestic acts of terrorism.

“There will be some tinkering around the edges. We hope that the trigger is upped.” She says adding group life is just “common sense. If you’re going to cover the building, you have to cover the people.”

For previous TRIA coverage, click here.Two companion bills seeking to extend TRIA are currently before the House of Representatives and the Senate.

“No one says it hasn’t accomplished what it set out to do. That’s quite rare,” Simon notes, adding that the real work toward finding a permanent solution will occur after any renewal.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.