(September 7, 2005) The California Chamber of Commerce, along with businesses and insurers across the nation, is supporting the renewal of the federal Terrorism Risk Insurance Act (TRIA).

Congress and President George W. Bush enacted the TRIA in 2002 in response to the post-9/11 crisis in the insurance industry. Commercial insurance policies covered much of the cost associated with the attack, but subsequently insurers and reinsurers refused to write terrorism-specific policies because another assault on the scale of the destruction of the World Trade Center would be devastating.

“Congress needs to extend TRIA before the current session ends,” said Charles Bacchi, Chamber legislative advocate. “Economic growth depends on the ability of businesses and individuals to obtain property and casualty insurance at reasonable and predictable prices, thereby spreading the risk of both routine and catastrophic losses.”

Market Stability
The TRIA stabilized the commercial insurance marketplace, guaranteeing coverage availability (and improved affordability) to all businesses. TRIA helped restore the economy by enabling financial transactions and construction and development projects once stalled due to a lack of terrorism insurance coverage to move forward.

TRIA is set to expire at the end of this year. Working to renew the TRIA or enact a similar, workable terrorism insurance mechanism is a nationwide coalition of businesses and organizations in the retail, transportation, real estate, sports and entertainment, manufacturing, and construction sectors.

The coalition, Insure America Against Terrorism, believes the security provided by a national terrorism insurance mechanism like TRIA is important to ensure the nation’s workers, customers and physical plants are protected and will be able to recover from a terrorist attack.

Action Needed
Federal lawmakers need to hear that maintaining a federal terrorism risk insurance mechanism beyond December 31 is a top priority for business. Contact your representatives in Congress to let them know how important commercial insurance is to protecting individual businesses and the economy if there is another massive terrorist attack.

Congress’ target date for adjournment is the end of September.

More background information is available in the Chamber’s 2005 Business Issues and Legislative Guide. For additional information and a way to contact your U.S. senators and representatives via the coalition website, visit www.terrorism-insurance.org.