ShareThisNAMIC: Not So Fast on TRIA Changes
NAMIC was joined by the Property Casualty Insurers Association of America to help prevent what could have been a major sticking point in efforts to include small- and medium-sized insurers in a federal terrorism backstop. Both organizations sent a letter to the American Insurance Association expressing disapproval with a revised statement of principles for extending the Terrorism Risk Insurance Act.
While the letter was intended to be part of an internal industry discussion, it became the subject of media attention. However, the letter and continuing discussions among the industry trade associations are getting all parties back in agreement on the need to not only extend TRIA, but also do it in a way that ensures participation by small- and medium-sized companies. In multiple appearances before Congressional committees and in policy papers and lobbying, NAMIC has consistently led advocacy efforts asserting that the re-authorized program must meaningfully address the concerns of the middle market.
The industry had agreed upon a set of principles for extending TRIA, but, on April 25, the AIA and the Coalition to Insure Against Terrorism released a revised set of principles that included changes detrimental to small- and medium-sized insurers.
Rather than urge Congress to reduce the program trigger to $50 million or less, the revised document said the trigger should be "no higher than the current $100 million, with possible special provision for small insurers." NAMIC and the Property Casualty Insurers Association of America argued against this, writing in their letter "This is a vital issue for medium and smaller insurers who, collectively, make up over 90 percent of the TRIA-writing companies in the industry."
The message was heard and appropriate actions were taken. By late last week, AIA and CIAT had revised their statement of principles to say, "Event trigger that provides meaningful opportunity for small company participation."
NAMIC will continue to work with the other trades on this issue and, when needed, step in to make the case for small- and medium-sized insurers.
Direct questions to NAMIC’s Senior Director of Federal Affairs Marliss Browder.
Posted: Tuesday, May 08, 2007 12:00:00 AM. Modified: Friday, June 08, 2007 12:47:03 PM.
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