TRIA Remains a Focus

WASHINGTON, DC-Associations representing the real estate and insurance industries are pressing Congress for a permanent solution to terrorism insurance–one that they hope will include government involvement. At the end of the last year, after much debate and delay, Congress extended the Terrorism Risk Insurance Act for an additional two years.

Organizations representing the insurance and real estate industries are making a case for a federal backstop in response to a request for public comments by the US Treasury Department. The plans are to send a report on the long-term availability of terrorism risk to Congress by Sept. 30.

“The same hurdles that have made it difficult for insurance industry to accurately model this risk have also prevented them from coming up with private sector solution to this problem,” says Martin L DePoy, steering committee coordinator for the Coalition to Insure Against Terrorism Risk. “I think Congress is hopeful that a private sector solution could come to fruition. But given the risks that are involved and potential for catastrophic loss [a private sector solution] doesn’t seem to be viable at least for short term.”