An official comment letter submitted by RIMS, the risk management society, to and at the request of the US Department of the Treasury has provided recommendations for expediting the process for certifying acts terror.
RIMS has recommended a 60- to 90-day deadline from the date of an event for the Secretary of Treasury to make a formal decision on its certification.
The letter also recommends that insurers should be allowed to quickly assess the total loss projected from the event and use this projection as the ‘insured loss’ until additional information is collected.
This alteration in particular is intended to expedite the process for determining whether an event meets the required Terrorism Risk Insurance Act (TRIA) trigger.
RIMS President Rick Roberts said: “Unnecessary complications or delays in the government’s decision-making process regarding terrorism certification only leads to greater uncertainty in the insurance marketplace.”
“Our hope is that these revisions to the TRIA programme will enable them to more efficiently assess these tragic events and communicate their findings faster to the organisations that have suffered losses.”
“RIMS sincerely appreciates the Department of the Treasury’s efforts to further study the TRIA programme and we look forward to supporting them throughout the process.”
