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PCI, NAMIC Applaud TRIA Bill, Express Concerns

Both the Property and Casualty Insurers Association of America and the National Association of Mutual Insurance Companies have applauded the introduction of S. 2244, a bipartisan bill to extend the Terrorism Risk Insurance Act for another seven years...
April 17, 2014

Both the Property and Casualty Insurers Association of America (PCI) and the National Association of Mutual Insurance Companies (NAMIC) have applauded the introduction of S. 2244, a bipartisan bill to extend the Terrorism Risk Insurance Act (TRIA) for another seven years. Both groups, however, expressed concern about some of the language in the bill. PCI and NAMIC are voicing concern about a provision in S. 2244 that would raise the deductible for insurers from a catastrophic attack by 33 percent for each company.

PCI expressed concern about the Senate’s proposal to increase each insurer’s co-share by a third, from 15% to 20%, “and the impact this will have on the availability and affordability of terrorism insurance for consumers.” NAMIC said the program was designed to soften the economic blow of a catastrophic terrorism attack by providing insurers with a degree of certainty regarding their immediate losses, “but the co-payment increase runs counter to that thinking.” The American Insurance Association (AIA) said the industry would be “more comfortable” with a permanent extension of the program.

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