“RIMS has adamantly expressed its advocacy for the reauthorization of TRIA and it’s reassuring to see this call to action gain momentum with much welcomed support from the NAIC and our many other industry partners,” said RIMS Board Director Carolyn Snow. “As risk professionals begin to work on their risk financing programs for the year ahead, it will be critical for us to have the assurance of market stability that TRIA brings so that all our assets, our employees and our properties, are protected from the potential devastation of terrorism.”
An official document released by the NAIC includes the following resolution regarding its support for TRIA: State insurance regulators support the reauthorization of TRIA to help ensure market stability through the availability of terrorism coverage and urge prompt Congressional action prior to the program’s expiration at the end of 2014 in order to minimize disruptions to the commercial insurance markets.
RIMS supports the following principles in development of a long-term solution for TRIA:
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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.
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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.
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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.
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The solution needs to address the long-term availability and affordability of insurance coverage for nuclear, biological, chemical, and radiological events caused by terrorism.
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All commercial property, workers’ compensation, auto and general liability lines should be included in any new plan.
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Insurance companies writing commercial lines should be required to participate in the program and be required to make coverage available for acts of terrorism.
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Tax incentives and eligibility for participation in the program should be considered to encourage creation of private insurance capacity.
The NAIC is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S.