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  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.