March 12, 2004—The Terrorism Risk Insurance Act of 2002 (TRIA), passed by Congress in November 2002, expires at the end of 2005. In addition, one of the key provisions of the act which mandates that insurance companies make available terrorism insurance on the same terms and conditions as property and casualty insurance expires at the end of 2004. Whether or not to extend this provision of the Act is the decision of the Treasury Secretary, who must act by September 1, 2004.
BOMA International has joined forces with the Coalition to Insure Against Terrorism (CIAT). CIAT is a coalition of policyholders which includes real estate associations, the U.S. Chamber of Commerce, Edison Electric Institute, and the National Football League to name a few.
BOMA International and CIAT strongly believe that TRIA is working. Terrorism insurance coverage is generally available and more affordable than prior to the enactment of the Act.
BOMA does not believe that the private insurance market can function well in the absence of such a federal backstop. BOMA and CIAT are working to encourage the Treasury Secretary to extend the “make available” provision and working with Congress to educate them on why a program, whether an extension of TRIA or something different, must be in place when TRIA expires.
For more information, contact Karen Penafiel at 202/326-6323.
