An alliance of insurance and financial services groups has called upon the US Treasury Department to recommend to Congress that the Terrorism Risk Insurance Act (TRIA) be extended for at least two years.
According to a report, the appeal came in formal comments filed with the Treasury on 2 June regarding TRIA's “make available” provision. The provision requires insurers participating in the scheme to make terrorism coverage available under roughly the same terms and conditions used for other risks.
The “make available” provision will expire at the end of 2004 unless the Treasury recommends otherwise by 1 September.
TRIA does not expire until 31 December 2005.
The alliance wants the Treasury to recommend that TRIA be extended by at least two years to minimise market instability and to allow Congress, the Treasury, industry participants, policyholders and other government officials the time necessary to gather market data, analyse that data and debate, develop and implement a long-term public sector/private sector solution for managing and spreading terrorism risk, said the report.
In its letter, the alliance said the Treasury should make the recommendation immediately.
The comments were filed by the American Insurance Association, the American Association of State Compensation Insurance Funds, the Council of Insurance Agents & Brokers, the Financial Services Roundtable, the Independent Insurance Agents & Brokers of America, the National Association of Mutual Insurance Companies, the National Association of Professional Insurance Agents, the Property Casualty Insurers Association of America, the Reinsurance Association of America, and the Surety Association of America, said the report.
