The House has passed a reauthorization of the Terrorism Risk Insurance Act of 2002 (TRIA). Now the Senate Banking Committee has passed its version of the bill only now it is called TRIP — the Terrorism Risk Insurance Program.
For those keeping score, the bill being considered in the senate is the Terrorism Risk Insurance Program (TRIP) Reauthorization Act of 2019. Or you can also call it S. 2877.
However you identify the bill, the fact that Congress is moving quickly on this very important legislation is not lost on PIA National. Spokesman Jon Gentile — who is the vice president of government relations — first praised the House for moving forward with the TRIP renewal.
“PIA strongly supports this bill, which extends the TRIA program for seven years while only making minimal changes to it, a key request PIA National has been pushing for in our advocacy,” Gentile said. “The House passage of TRIA over a year in advance of its expiration is a breath of fresh air and will be welcomed by policyholders and the market.”
The seven-year extension also adds a study on cyber terrorism.
Gentile said the PIA lobbied hard in the senate to get quick action on its version of the TRIP renewal.
“We are pleased our advocacy has paid off with the Senate Banking Committee acting in a timely manner, the same week a companion measure passed the U.S. House. This bill makes minimal changes to the program and provides a long-term reauthorization,” he said. “This bill should go to the Senate floor as soon as possible so TRIA reauthorization can be finalized before the end of 2019.”
Gentile said PIA National is also pleased with the bipartisan effort to get this done.
“Bipartisan agreement on legislation is rare in Congress these days, and this opportunity to get TRIA over the finish line should not be squandered. PIA National calls on the Senate to pass this bill before the end of the year,” Gentile said.
Nat Wienecke of the American Property Casualty Insurance Association (APCIA) agrees with Gentile. “The broad bipartisan support in the House and the Senate Banking Committee sends a clear message of the critical role TRIA plays in stabilizing the economy.”
National Association of Mutual Insurance Companies senior vice president Jimi Grande said, “TRIA is the right model for risk-sharing between insurers, policyholders, and the federal government that, in addition to providing an immediate stabilizing effect in the short-term following a terrorist attack, has helped create a robust private market for terrorism insurance to form where it would not have otherwise.”
He agrees with PIA National that Congress ought to be able to get this passed and onto the president’s desk for a signature by the end of 2019.
The movement to renew TRIP does — however — have its detractors. Consumer Federation of America spokesman J. Robert Hunger said TRIP is not needed in this form and — itself — needs reformed.
“We believe the program is no longer needed, and this public subsidy of the overcapitalized insurance industry should be wound down,” Hunter said. “If Congress wants to extend TRIA, it should no longer be as a corporate welfare program, instead, it should require insurance companies to pay a fair, actuarially sound premium for any federal backup of private coverages that Congress authorizes.”
Source links: PIA National — link 2, link 2, Insurance Business America, Insurance Journal