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Thursday, May 2, 2013

Political Analysis & Update on TRIA

For TRIA, one political challenge to re-authorization is that 28 of the 61 members of the House Financial Services Committee and 7 of the 22 members of the Senate Banking Committee were not in Congress when the law was last renewed, in 2007. As a result, we anticipate that questions about the program’s temporary nature will be energetically debated.

Currently, legislation (H.R. 508) introduced by Representative Michael Grimm (R-NY) and Representative Carolyn Maloney (D-NY), that would extend TRIA for 5 years past the 2014 expiration date, is the only TRIA renewal bill in Congress.
As a follow-up to yesterday's posting about CIAT/Marsh's report detailing the current terrorism insurance market, below are some additional findings:
  1. The percentage of companies buying property terrorism insurance has remained constant since 2005 and has been in the low 60% range since 2009. However, financial institutions have one of the highest take-up rates, last year at 75%.
  2. The percent of property insurance terrorism coverage costs has been falling for financial institutions and currently stands at 4% for 2012, down from 6% in 2011.
  3. Larger companies are more likely to purchase property terrorism insurance, and also to see the lowest cost as a percentage of overall property premiums.
Learn more from Marsh and read the full TRIA report.