Outlines Principles for Developing Long-Term TRIPRA Solution
NEW YORK (September 11, 2012) – At the first hearing held by the United States
House of Representatives, Subcommittee on Insurance, Housing and Community Opportunity to
determine the best strategies for extending the Terrorism Risk Insurance
Program Reauthorization Act (TRIPRA) , former RIMS President Janice Ochenkowski delivered testimony on behalf of the Society that emphasized the importance of
reauthorizing this critical legislation.
The act, that protects organizations’ ability to purchase sufficient
insurance to cover acts of terrorism, is currently under review and set to
expire on December 31, 2014.
“RIMS applauds Congress for taking the first
step to reauthorize TRIPRA and its foresight in recognizing the significance of
ensuring that adequate insurance for acts of terrorism remains readily
available to all businesses,” said Ms. Ochenkowski, who is also the Managing
Director at Jones Lang LaSalle responsible for global risk management. “Failure to reauthorize would have a
devastating impact on so many industries – real estate, public and private
transportation entities, schools, hospitals, event venues and manufacturers to
name a few. RIMS is honored to be called on for our collective expertise and to
play an active role in developing a long-term solution. ”
RIMS supports the following
principles in development of a long-term solution for TRIPRA:
TRIA-type program, many entities will simply be self-insured due to lack of
availability or affordability of coverage or both - leaving their companies and
their workers exposed to an event that could bankrupt the company.
program should ensure an orderly and efficient response to minimize any market
disruptions and ensure benefits are available to any victims - individuals or
companies – from a catastrophic loss scenario.
and public partnership provides the best alternative to addressing the
long-term needs of availability and affordability of insurance to cover acts of
solution needs to address the long-term availability and affordability of
insurance coverage for nuclear, biological, chemical, and radiological events
caused by terrorism.
commercial property, workers’ compensation, auto and general liability lines
should be included in any new plan.
companies writing commercial lines should be required to participate in the
program and be required to make coverage available for acts of terrorism.
incentives and eligibility for participation in the program should be
considered to encourage creation of private insurance capacity.
To view the full testimony and to see other RIMS Position Statements