HARTWIG ASKS US GOVERNMENT TO RENEW TRIA
Source: insurancenews.com.au, 18 November 2013
Insurance Information Institute President Robert Hartwig has outlined the importance of the Terrorism Risk Insurance Act (TRIA) to the US House of Representatives. TRIA was introduced in 2002 as terrorism cover fell away following the September 11, 2001, attacks. It is due to expire at the end of next year. The government programme, which has already been extended twice, provides reinsurance coverage in the event of major losses. Testifying before an insurance sub-committee, Hartwig argued TRIA’s expiration would result in a US$69 billion (MYR322.52 billion) hit to real GDP within three years. About 290,000 jobs would be lost and US$798 billion (MYR2,573.46 billion) would be shaved off household net worth. Hartwig says it is “virtually certain” terrorism exclusions will soon reappear. Many other nations, including Australia, the UK, France and Germany, have programs similar to TRIA and none are considering discontinuing them, he told the House. Hartwig adds that terrorism risk remains essentially uninsurable due to the inability to predict events’ frequency or severity.
(US$1.00 = MYR3.22)