Tarique Nageer, Property Terrorism Placement and Advisory Leader at Marsh, a Marsh & McLennan firm, has testified before a U.S Senate Committee to highlight the importance of the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA).
Nageer urged members of the Committee on Banking, Housing and Urban Affairs to renew the Act, which is scheduled to expire on December 31, 2020.
“Terrorism remains an evolving, expanding, and ever-present risk in the U.S., which underscores the importance of the Terrorism Risk Insurance Program and its role in ensuring the continued stability and health of the terrorism insurance markets,” Nageer told the Committee. “We cannot afford to be complacent with regards to the program’s reauthorization.”
John Doyle, President and CEO at Marsh, also commented on the importance of TRIPRA: “The breadth of clients purchasing terrorism insurance in the U.S. is considerable and comprised of companies across every sector of the economy, of all sizes, in big and small cities alike.”
“These organizations depend on the program to thrive and protect their workforce,” Doyle added. “We strongly support the reauthorization of TRIPRA.”
In its recent 2019 Terrorism Risk Insurance Report, Marsh noted that the expiration of TRIPRA could create capacity shortfalls in the global property terrorism re/insurance market, particularly for businesses located in high profile cities and employers with significant workers’ compensation accumulations.
“Uncertainty about TRIPRA’s future is already prompting insurers and terrorism insurance buyers to seek additional reinsurance limits and coverages, on the assumption that there will be limited capacity available in the private market,” said Emil Metropoulos, Workers’ Compensation & Terrorism Center of Excellence Practice Leader, Guy Carpenter, also a Marsh & McLennan firm.
Nageer further stated: “A seamless renewal process and robust reauthorization bill can help keep the terrorism insurance market viable and competitive for buyers and encourage decisions to be made with a full understanding of shifts in the nature of terrorism and how they can affect organizations and insurers.”