SIIA ramps up lobbying as TRIA vote pends
The Self-Insurance Institute of America (SIIA) has ramped up its lobbying efforts in favour of reauthorisation of the Terrorism Risk Insurance Act (TRIA) as a congressional vote looms.
The SIIA argues that if the bill is not extended, captives writing terrorism-related risks will become “no longer viable alternative risk transfer vehicles”.
According to the SIIA: “Over the past few weeks, SIIA lobbyists have met with about a dozen key members of congress to discuss the legislation and educate them about TRIA captives. While many lawmakers are unwilling to consider the impact of TRIA’s expiration, a significant number of members from both parties have told SIIA that they are willing to extend the program to ensure terrorism coverage does not become too costly or unavailable. Insiders confirmed that industry stakeholders will need to pressure committee and party leadership to understand the costs of the program expiring.”
Phillip England, a shareholder in law firm Anderson Kill & Olick, said: “The TRIA captive program was created to provide a way for companies to deal with terrorism risks at affordable rates using a captive. The absence of government interest would probably effectively kill the TRIA captive program because the government supplies the basic structure for a TRIA captive.”
He continued: “Congress considers captives a back-burner issue— there is no real expertise and congress tends to leave captive issues to the IRS. Captive owners need to focus on congresspeople on Homeland Security committees. Routine communications to congress generally will not accomplish anything.”
