US re/insurers back terror bill renewal

Two prominent US re/insurers have given their support to the latest legislation intended to reauthorize the Terrorism Risk Insurance Program (TRIP) for five years.

Both TransRe and insurer Travelers have backed the extension of the terrorism bill currently being debated in congress.

TransRe says it appreciates the hard work and dedication of the House Financial Services Committee and its chairman Jeb Hensarling and the Housing and Insurance Subcommittee and its chairman Randy Neugebauer for introducing HR 4871, the legislation intended to authorise the bill.

“We understand the hard work and dedication that was required to bring this measure forward and we appreciate the significance of the committee's moving forward on a timely basis with the renewal of the Terrorism Risk Insurance Act.” TransRe said in a statement.

It added: “TransRe supports HR 4871 as we believe that this legislation will provide the right balance of consumer and business protection, private sector insurance and reinsurance provision, and government support. By gradually raising the event trigger, HR 4871 decreases private industry's reliance on taxpayers and the current federal reinsurance programme.”

“TransRe notes HR 4871's bifurcation of conventional terrorism from acts of terror perpetrated using nuclear, biological, chemical and radiological means (NBCR). Given the current risk appetite of private providers, this bifurcation of conventional acts versus NBCR is a reasonable approach over the TRIP timeframe. We are encouraged that the proposed legislation also includes a certification process, which will provide certainty of cover for insureds as well as insurers and reinsurers following an event.”

Travelers chairman and chief executive Jay Fishman has also added his weight to the case for the bill to be passed.

Fishman explains, “The terrorism insurance program protects the economy as a whole by providing a structure to rebuild in the wake of an event. Extending the programme will provide certainty for policyholders, facilitate important reforms that increase the private sector's capacity for managing conventional risk, and maintain a robust public-private program for managing large scale events."