WASHINGTON (April 19, 2007) — The National Association of Mutual Insurance Companies (NAMIC) applauds the House Financial Services’ Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises for its decision to consider testimony on terrorism insurance. The panel has scheduled a hearing for April 24 on extending the Terrorism Risk Insurance Act.
“This hearing comes at a crucial time,” said NAMIC Senior Federal Affairs Director Marliss Browder. “With TRIA set to expire on Dec. 31, policies are already being written that exclude coverage for terrorism. Congress needs to extend TRIA sooner rather than later.”
TRIA provides a government financial backstop in the event of a foreign-initiated terrorist attack on U.S. soil. This protection is vital to the continued health of the American economy, as there is insufficient reinsurance capacity in the private insurance market to cover a major terrorist attack.
A key part of any public/private partnership for terrorism insurance is ensuring that small- and medium-sized insurers participate, since they represent a significant percentage of the U.S. insurance marketplace. NAMIC, whose members represent 34 percent of the workers’ compensation market and 32 percent of the commercial property and liability market, encourages Congress to include the following provisions in any proposed legislation:
“These provisions will enable small- and medium-sized insurers to afford reinsurance costs, which would otherwise be too expensive,” Browder said. “NAMIC looks forward to continuing to work with Subcommittee Chairman [Paul E.] Kanjorski, ranking member [Deborah] Pryce, and the other members of the panel to formulate a lasting solution to the terrorism insurance situation.”
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Posted: Thursday, April 19, 2007 12:00:00 AM. Modified: Thursday, April 19, 2007 12:22:06 PM.
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