Mar 05,2007 00:00
Tells House Panel TRIA is 'Not Just a
In testimony submitted for a March 5 hearing in New York City by the House Financial Services Committee's Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, PIA reiterated its longstanding support for creation of a long-term mechanism for terrorism coverage to ensure the viability of the existing domestic insurance market.
"Terrorism insurance is an important part of the nation's economic safety net because it allows insurers to manage terrorism risk in a cost effective manner," PIA noted in its statement. "PIA believes that legislation must be passed well before the December 31, 2007 expiration of TRIA." In addition, PIA encouraged Members of Congress to set the trigger level for a federal backstop at a level that allows small company participation in the program, not just cover large insurers.
PIA also endorsed expanding the current program to include nuclear, biological, and chemical and radiological (NBCR) coverage. "Attacks of this nature must be addressed because the severe magnitude cannot be absorbed by the insurance industry without federal participation."
The association also pointed out that the need for TRIA is nationwide, not just confined to major urban areas, citing comments from PIA agents in areas as diverse as
"Insuring against terrorist attacks is not just a '
PIA's testimony went on to note that Congressional action to ensure a functioning insurance marketplace during times of war is not without precedent.
"Our Association was founded in 1931. As a result, we have previous experience with the issue of insurance during times of war," the PIA statement said. "Our archives detail how, following the attack on