House Holds NYC Hearing on Extension of Terrorism Risk Insurance Act

New York, NY - Today, the House Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises held a hearing in New York City to discuss extending the Terrorism Risk Insurance Act (TRIA), which is currently scheduled to expire at the end of this year.  The hearing was held at the request of Congresswoman Carolyn B. Maloney (D-Manhattan, Queens), who has led efforts in the House to pass a long-term extension of this vital legislation.  Mayor Michael Bloomberg and Senator Charles Schumer were among the government and business leaders who testified at the hearing, which was chaired by Rep. Gary Ackerman (D-Queens, Nassau).

"We heard loud and clear today that without a long-term TRIA extension, lower Manhattan will not be fully redeveloped and our city's economy will suffer,” said Congresswoman Maloney.  “TRIA is an essential tool for providing economic security following a terrorist attack, not a bailout of the insurance industry."

TRIA has buoyed economic development in the aftermath of 9/11 by insuring losses in the event of future acts of terrorism. TRIA requires property and casualty insurers to make available terrorism insurance and provides a government backstop covering 90% of insured losses, up to $100 billion each year, after insurer deductibles.

Rep. Maloney also thanked the Chairman of the House Financial Services Committee, Barney Frank (D-MA), and Capital Markets Subcommittee Chairman Paul Kanjorski (D-PA) for agreeing to her request to hold today’s hearing in New York.

"I am delighted that Chairmen Frank and Kanjorski brought this hearing to New York City so that Members can see for themselves the pressing need to extend terrorism risk insurance," said Congresswoman Maloney.  “Passing a TRIA extension is one of the most important things Congress can do to boost New York’s economy.”

Text of Rep. Maloney’s Remarks

"Among the many issues that confront Congress urgently this year, there are few so important to New York’s economy as the renewal of federal support for terrorism risk insurance.

"The current Terrorism Risk Insurance Extension Act (TRIEA) expires at the end of this year and many policyholders are simply unable to obtain coverage beyond that date unless the Act is renewed.  Policies written now have conditional coverage beyond that date. As we learned after the attacks of September 11, without terrorism insurance New York’s economic development will come to a screeching halt.

"We need a new TRIA bill and we need it promptly. It is not helpful to have short extensions that throw the markets into disarray every year and prevent long-term planning. Specifically we cannot rebuild lower Manhattan without a bill that lasts at least 16 years, so that the bonds necessary to finance the Freedom Tower can be issued.    

"At my request, and as the first step in the legislative process, the House Financial Services Committee’s Subcommittee on Capital Markets held today's field hearing in New York City.  The purpose of this hearing was to give Members the opportunity to understand the need for a long-term renewal of TRIA by hearing from New York’s leaders of government and captains of industry and to see for themselves the rebuilding of lower Manhattan.  I thank Senator Schumer and Mayor Bloomberg for addressing the Members --they are the best advocates for New York and for the great engine of our economy that it represents." 

Background

December 17, 2005: Terrorism Risk Insurance Extension Gains Final Passage
http://maloney.house.gov/index.php?option=com_content&task=view&id=1026&Itemid=61

June 30, 2005: Bush Administration Claims Terrorism Risk Insurance is No Longer Necessary
http://maloney.house.gov/index.php?option=com_content&task=view&id=70&Itemid=61

June 17, 2002 : Maloney, Corzine Call for Swift Passage of Terror Reinsurance Legislation 
http://maloney.house.gov/index.php?option=com_content&task=view&id=588&Itemid=61

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