The Reinsurance Association of America has called on the US government to show common sense and reauthorise its terrorism cover.
RAA President Frank Nutter has joined a coalition of varied business interests to urge Congress to quickly pass a reauthorization of The Terrorism Risk Insurance Act (TRIA) which is set to expire at year-end 2020. The group have sent an open letter to Congress asking for the TRIA to be extended.
Commenting on the letter, Mr Nutter said: “We view a clean extension of TRIA as straightforward and common sense since previous reforms to the program have minimised taxpayer exposure. The program is intended to provide an insurance mechanism that is vital for our nation’s economic security and it does so.”
“TRIA works well to fill the vacuum in (re)insurance capacity for acts of terrorism, keeps premiums paid by policyholders at affordable levels, provides insurance coverage to support economic activity, and minimises the need for public disaster assistance should there be future terrorist acts in the U.S,” he added. “This program is a win for the business community and for U.S. taxpayers, and it should be reauthorised.”