NAREIT and other members of the Coalition to Insure Against Terrorism (CIAT) filed comments with the Treasury Department May 31 in response to a Notice of Proposed Rulemaking (NPRM) from the Federal Insurance Office (FIO) regarding aspects of the Terrorism Risk Insurance Act (TRIA).
TRIA was first signed into law in 2002 when reinsurers and primary insurers exited the market for terrorism risk coverage after paying out more than $30 billion in claims following the 9/11 terrorist attacks.
The NPRM seeks to bring regulations in line with the current structure of TRIA, as amended by the 2015 Reauthorization Act.
“CIAT continues to believe that TRIA has been a tremendous success, and appreciates FIO’s efforts to maintain a strong regulatory framework for its effective operation,” CIAT wrote.
CIAT’s comments to the Treasury covered:
- The process in which an act of terrorism is certified under TRIA;
- The participation of captive insurance companies under TRIA; and
- The insurance market aggregate retention amount.
CIAT is a broad coalition of commercial insurance consumers formed immediately after 9/11 to ensure that American businesses could obtain comprehensive and affordable terrorism insurance.
(Contact: Robert Dibblee at email@example.com)