Maloney says proposed TRIA changes would reduce availability and affordability of insurance

Press Contact: Mike Morosi (202) 225-7944

WASHINGTON –Congresswoman Carolyn B. Maloney (D-NY) released the following statement in opposition to changes to the Terrorism Risk Insurance Act (TRIA) program contained within the TRIA Reform Act bill considered today by the House Financial Services Committee.

“While the TRIA Reform Act is a significant improvement over previous drafts, I still have strong concerns with the bill. Specifically, I oppose the provision that would increase the trigger for the government backstop from $100 million to $500 million. I also oppose treating ‘conventional’ terrorist attacks differently from so-called “NBCR attacks” — nuclear, biological, chemical, and radiological attacks.

“These changes would drive small- and medium-sized insurers out of the market entirely, which would actually reduce the amount of terrorism insurance available to businesses. The insurers that remained in the market would be forced to increase rates to levels that are unaffordable to Main Street businesses across the country.

“I care deeply about TRIA, and I want to see Congress pass the strongest TRIA bill possible. But I can’t support a bill that would, I believe, undermine the whole point of TRIA — to make sure that terrorism insurance is readily available, and affordable, to all American businesses.”

Background:
After the 9/11 terrorist attacks, many insurance companies excluded terrorism events from their insurance policies. As a result, Congress passed TRIA as a three year temporary program in 2002, which created a federal backstop to protect against terrorism related losses. Congress extended the program for two additional years in 2005 and for seven additional years in 2007. Maloney is the lead Democratic co-sponsor of the TRIA Reauthorization Act of 2013 to extend the Terrorism Risk Insurance Program for five years, through December 31, 2019.