North America

Senate delay could jeopardise US terror insurance Act

The US Congress s passage of an extension to the Terrorism Risk Insurance Act (TRIA) appears less likely this year following Senate banking committee chairman Richard Shelby s statement that he wants additional hearings on the matter. Mr Shelby said that in addition to hearings he wants to review the treasury department s study of TRIA, which is scheduled for release in mid-2005. The TRIA legislation, passed in the wake of September 11, provides for a federal backstop for p/c insurers in the event of future terrorist attacks on US soil. Hopes for renewal were raised by a House of Representatives committee s recent approval of a two-year extension of TRIA to 2007. An array of insurance and reinsurance trade groups support TRIAs extension, and say that quick passage is needed to ease uncertainties over property insurance renewals in 2005.