RIMS Applauds Sponsors for Introducing TRIA Extension

February 06, 2013

  Society Outlines Principles for Developing Long-Term TRIA Solution

 

NEW YORK (February 6, 2013) – RIMS, the risk management society, has been a long standing advocate for the Terrorism Risk Insurance Act and commends proponents in Congress for introducing a long term extension to the program..  The Act, which protects organizations’ ability to purchase sufficient insurance to cover acts of terrorism, is set to expire on December 31, 2014.

In September 2012, former RIMS President Janice Ochenkowski delivered testimony on behalf of the Society at the first hearing held by the United States House of Representatives, Subcommittee on Insurance, Housing and Community Opportunity.  The testimony addressed the best strategies for extending the Terrorism Risk Insurance Act.

RIMS supports the following principles in development of a long-term solution for TRIA:

  • Without a TRIA-type program, many entities will simply be self-insured due to lack of availability or affordability of coverage or both - leaving their companies and their workers exposed to an event that could bankrupt the company.
  • The new program should ensure an orderly and efficient response to minimize any market disruptions and ensure benefits are available to any victims - individuals or companies – from a catastrophic loss scenario.
  • A private and public partnership provides the best alternative to addressing the long-term needs of availability and affordability of insurance to cover acts of terrorism.
  • The solution needs to address the long-term availability and affordability of insurance coverage for nuclear, biological, chemical, and radiological events caused by terrorism.
  • All commercial property, workers’ compensation, auto and general liability lines should be included in any new plan.
  • Insurance companies writing commercial lines should be required to participate in the program and be required to make coverage available for acts of terrorism.
  • Tax incentives and eligibility for participation in the program should be considered to encourage creation of private insurance capacity.

For more information, contact:

Josh Salter, Director of Communications, (212) 655-6059 or JSalter@rims.org

About RIMS

As the preeminent organization dedicated to promoting the profession of risk management, RIMS, the risk management society®, is a global not-for-profit organization representing more than 3,500 industrial, service, nonprofit, charitable and government entities throughout the world. Founded in 1950, RIMS is committed to advancing risk management capabilities for organizational success, bringing networking, professional development and education opportunities to its membership of more than 10,000 risk management professionals who are located in more than 60 countries. For more information on RIMS, visit www.RIMS.org. 

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