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Monday, August 5, 2013

Fitch Ratings Published Special Report on TRIA

Fitch ratings released a report on terrorism reinsurance, TRIA legislation and the potential impacts if Congress does not extend the Terrorist Risk Insurance Program Reauthorization Act (TRIPRA or commonly TRIA) before it expires on December 31, 2014.

The report findings support ABIA's position that the program should be renewed because the private insurance market could not provide the necessary coverage without the federal backstop in place.
An excerpt from Fitch Ratings:
  • "Withdrawal of TRIPRA reinsurance protection without readily available substitute coverage will likely move insurers to exclude terrorism from property coverage to manage risk aggregations in concentrated geographic segments."
  • "TRIPRA expiration or meaningful program changes may have significant effects on workers’ compensation insurance coverage availability and pricing."
  • "Although private market stand-alone terrorism coverage has increased modestly over time, it is unlikely that substantial private market capacity would arise as a substitute to TRIPRA coverage if the program is allowed to expire."
Learn more from Fitch Ratings.

If you would like to learn more about ABIA's support of TRIA or help our efforts to ensure TRIA is extended, please contact us to join the ABIA's TRIA Working Group.