INSURERS EXPRESS APPROVAL FOR RENEWAL OF TRIA

US Senate hearings yesterday on the renewal of the Terrorism Risk Insurance Act (TRIA) heard approval for the continuation of the federal insurance backstop for terrorist acts from the Reinsurance Association of America, the American Insurance Association, the Independent Insurance Agents & Brokers of America, the Council of Insurance Agents & Brokers and the Property Casualty Insurers Association of America. Speaking for the RAA, XL Reinsurance America CEO James Veghte said that “without some form of long-term federal backdrop, we would expect less coverage available at the policyholder level, increased prices for terrorism coverage, and more limited reinsurance capacity”. US Senate banking committee chairman Christopher Dodd reiterated his stance that TRIA should be reconfirmed on a “more permanent” basis. Sen Dodd and his House counterpart, financial services committee chairman Barney Frank, have promised early approval for renewal of the legislation. TRIA is scheduled to expire at year-end.