TRIA lapse in US could ‘end terrorism coverage’, warns APCIA’s Wienecke
The US government’s current Terrorism Risk Insurance Act (TRIA) must be reauthorised this year, even though the programme expires at the end of 2020, the American Property Casualty Insurance Association (APCIA) has warned.
APCIA’s call to action, aimed at US Congress, comes as the Senate Banking Committee held a hearing on whether to reauthorise the Terrorism Risk Insurance Programme yesterday (18 June 2019).
Urgent action is required, explained Nat Wienecke, senior vice president of federal government relations at APCIA, because in Autumn (Fall) 2019 insurers will begin negotiating new policies with durations that run beyond TRIA’s expiry date. He warned the policies would have “provisions ending terrorism coverage should TRIA lapse”.
“Reauthorising TRIA as soon as possible also will avoid disruptions and confusion in the marketplace for both insurers and their consumers,” Wienecke added.
Last month, ratings agency AM Best warned insurers that they might face a ratings downgrade if the act was not renewed. Its reauthorisation is not a foregone conclusion in the politically divided atmosphere in Washington.
TRIA was originally passed in 2002 in response to the 9/11 attacks to support greater access to terrorism insurance for commercial businesses.
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