RIMS has expressed its concern for Congress’ inability to extend the Terrorism Risk Insurance Act (TRIA) before its deadline on 31 December 2014.
RIMS president Carolyn Snow commented: “We are extremely disappointed that Congress failed to pass an extension of TRIA, despite strong bipartisan support.”
“The programme’s expiration will have many negative repercussions for commercial insurance consumers, the countless organisations they represent and the US economy as a whole. Congress allowed a programme to expire that has proven to be a success.”
Snow has also raised the point that TRIA’s expiration will almost certainly cause rates to rise, placing many lending agreements in jeopardy and forcing some organisations to self-insure or go without.
A number of organisations across the insurance industry have been pushing Congress to pass an extension for the past two years.
Snow continued: “We urge both the House and Senate to act swiftly on this issue as soon as they convene in January. The longer this lapse in coverage is allowed to continue, the more the US economy will suffer.”
Insurance broker Aon has also commented on the situation in the midst of assisting its clients understand the impact on their businesses and the wider insurance market as they plan for 2015 policy renewals.
Aon stated: “Since its passage over a decade ago in the wake of the 9/11 terrorist attacks, TRIA has stabilised the insurance markets by fostering certainty, lowering the risk of investment and increasing much-needed capacity for [US] businesses.”
RIMS and others have stated they intend to continue the push for TRIA reauthorisation in the new year.
