The Coalition to Insure Against Terrorism (CIAT), a broad coalition of national business interests representing commercial insurance policyholders co-founded by Nareit after the 9/11 terrorist attacks, submitted comments on June 11, 2020 to the Federal Insurance Office (FIO) of the Department of Treasury regarding the Terrorism Risk Insurance Program (TRIP). TRIP was established by Congress in 2002 to ensure that American businesses had access to comprehensive and affordable terrorism insurance and continues to this day to play an essential part in keeping the U.S. economy stable and functioning.
In the comment letter, CIAT members highlighted the three important benefits that TRIP has achieved: (1) policyholders have the security of knowing their risk is properly insured rather than dependent upon after-the-fact disaster assistance; (2) the insurance industry’s risk management and claims adjustment expertise is available for terrorism risk; and (3) a more significant portion of the costs of recovery from any act of terrorism will be borne by the private insurance industry’s capital base than would be the case without TRIA ensuring their participation. Additionally, it has cost the Federal government and taxpayers nothing. Contrasting this to the ad hoc nature of prior federal disaster responses, having TRIP in place decreases taxpayer exposure, improves policyholder risk management, and ensures a functioning terrorism insurance marketplace.
Last fall, Congress adopted legislation reauthorizing TRIP for seven years until 2027. CIAT’s comments were in made in advance of the FIO’s biennial report to Congress on the effectiveness of TRIP.
CIAT firmly believes that after nearly two decades, TRIP has been successful in achieving its primary purpose of making terrorism coverage available for commercial policyholders.
(Contact: Robert Dibblee at rdibblee@nareit.com)