The National Association of Insurance Commissioners (NAIC) passed a resolution supporting the reauthorization of the Terrrorism Risk Insurance Act (TRIA), established to make terrorism coverage available to businesses. The resolution was passed during a meeting of the Government Relations Leadership Council during the Summer National Meeting in Indianapolis.
Passed post-9/11, TRIA is set to expire in December 2014. Fitch Ratings told Bermuda:Re in May that the failure to renew would result in terrorism premium hikes by “inducing commercial insurers to retreat from larger metropolitan areas, reducing the availability of coverage.”
President-elect of the NAIC and North Dakota insurance commissioner Adam Hamm commented: “we strongly urge members of congress to reauthorise this critical piece of legislation. In addition to providing essential coverage for commercial policyholders, this federal backstop remains an invaluable part of the industry’s ability to preserve its financial and maintain risk management.”
NAIC, terrorism, TRIA