Swift passage of a 10-year Terrorism Risk Insurance Act Reauthorization bill introduced today will maintain America’s economic security and foster continued development in cities across the country while protecting the economy from terrorism, according to the National Association of Mutual Insurance Companies.
“The program created under TRIA has been an unmitigated success in fostering economic growth, development and creating jobs,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “In the wake of the Sept. 11, 2001 attacks, more than $16 billion in development projects were cancelled or delayed, at a cost of hundreds of thousands of jobs, because lenders required terrorism coverage that could not be provided by the private market. Congress created the risk sharing model under TRIA to not only protect against truly catastrophic attacks, but to allow for a private market to develop and cover losses that would otherwise be paid for with taxpayer dollars.”
The Terrorism Risk Insurance Program Reauthorization Act of 2013, introduced by Reps. Michael Capuano, D-Mass., and Peter King, R-N.Y., along with 19 original cosponsors from across the country, would reauthorize the program for another 10 years, through 2024. Terrorism continues to be a virtually impossible risk for insurers to measure, Grande said, because any relevant information regarding prior potential losses is kept classified, and because of the human element involved.
“A tornado doesn’t change its path to find the weakest building, and a hurricane doesn’t make landfall based on the preparedness of communities along the shore,” Grande said. “Terrorists can and will seek to strike at the places where we are most vulnerable however, and as we improve security in one area, they simply target another.”
Currently, 49 members of the House, representing 22 states and the District of Columbia, have voiced support for extending the current TRIA program. NAMIC continues to push for a swift, long-term reauthorization of the TRIA program, to ensure a stable marketplace to aid the current economic recovery. Although its expiration date is not until the end of 2014, Grande cautioned that the negative effects of failing to extend the program will be felt long before then.
“A long-term extension of TRIA, passed swiftly by Congress, is the best possible protection for our economy from terrorism,” he said. “As a part of our national security system, and as a catalyst for continued development, the TRIA program is too important for Congress to wait until the last minute.”
Contact: Matt Brady
Director - Federal Public Affairs