Serial No. 110-24: Policy Options for Extending the Terrorism Risk Insurance Act (TRIA): Hearing before the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises of the Committee on Financial Services U.S. House of Representatives, One Hundred Tenth Congress, First Session, April 24, 2007 [open pdf - 4MB]
From the opening statement of Gary L. Ackerman: "We meet this afternoon to review the policy options for extending the Terrorism Risk Insurance Act, or TRIA. In the wake of September 11th, Congress designed TRIA as a temporary program with the expectation that the insurance industry could eventually model and price for terrorism risk. The private marketplace, however, did not recover as quickly as initially hoped. As a result, we extended TRIA for 2 years in 2005. While TRIA has increased the availability and affordability of terrorism risk insurance, the marketplace is still tenuous. Insurers still have limited capital to cover terrorism losses alone and without Federal assistance. Property/casualty firms had only $164 billion available to cover terrorism losses in 2005, according to the Insurance Information Institute, but some models have predicted terrorism losses of more than double this number. TRIA as amended will, of course, expire at the end of this year. Because insurers remain uncomfortable with their ability to reliably price coverage for traditional terrorism, we need to extend this law once again in order to protect our Nation's economic security. In considering these matters, we must also act both in a timely fashion and in a deliberate manner so as to prevent marketplace disruptions, allow for careful consideration of the policy implications of our actions, and avoid unintended consequences." Statements, letters, and materials submitted for the record include those of the following: Janice M. Abraham, Leonard W. Cotton, Joseph P. Ditchman, Vincent T. Donnelly, Brian E. Dowd, and Thomas R. Watjen.
Serial No. 110-24
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