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Thursday, September 19, 2013

TRIA Update: ABIA Letter & Congressional Hearings

The Terrorism Risk Insurance Act (TRIA) should be promptly reauthorized said ABIA, along with ABA and ABA Securities Association (ABASA) affiliate, in a letter to the Treasury Department this week. 

Although TRIA does not expire until the end of 2014, we explained that it should be reauthorized now to ensure the continued availability and affordability of terrorism risk coverage.

“Were TRIA to lapse, a variety of undesirable market conditions would result,” the letter said.  “Absent TRIA, the availability of coverage would be minimal and the private insurance marketplace would function inefficiently at best.”

Our letter recommended a reauthorization period of at least five years and that Treasury consider ways to reduce TRIA’s potential liability to the federal government in order to ensure a long-run transition to a traditional re-insurance marketplace.

Read the Letter.

Congressional Hearings on TRIA
  • The full House Financial Services Committee is holding a hearing on renewing the Terrorism Risk Insurance Act of 2002 (TRIA) at 10:00am today. Reps. Grimm, Capuano, King, and Maloney will testify along with insurers and other advocates. See the Committee Memorandum.
  • The Senate Banking Committee will hold a hearing on TRIA on Wednesday, September 25, 2013 at 10:00am. Learn more from the Senate Banking Committee.