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Insurance broker and risk advisor Marsh has urged Congress to pass the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which is scheduled to expire December 31, 2020.
“Terrorism remains an evolving, expanding, and ever-present risk in the US, which underscores the importance of the Terrorism Risk Insurance Program and its role in ensuring the continued stability and health of the terrorism insurance markets,” Marsh property terrorism placement and advisory leader Tarique Nageer said in testimony before the Senate Banking Committee Tuesday. “We cannot afford to be complacent with regards to the program’s reauthorization.”
“The breadth of clients purchasing terrorism insurance in the US is considerable and comprised of companies across every sector of the economy, of all sizes, in big and small cities alike,” said John Doyle, president and CEO of Marsh. “These organizations depend on the program to thrive and protect their workforce. We strongly support the reauthorization of TRIPRA.”
“Uncertainty about TRIPRA’s future is already prompting insurers and terrorism insurance buyers to seek additional reinsurance limits and coverage, on the assumption that there will be limited capacity available in the private market,” said Emil Metropoulos, Workers’ Compensation & Terrorism Center of Excellence practice leader at Guy Carpenter, a Marsh & McLennan company.
“A seamless renewal process and robust reauthorization bill can help keep the terrorism insurance market viable and competitive for buyers and encourage decisions to be made with a full understanding of shifts in the nature of terrorism and how they can affect organizations and insurers,” Nageer said.
