June 11, 2004—On May 18, Christopher Nassetta, CEO of Host Marriott, testified on behalf of the Coalition to Insure Against Terrorism (CIAT) before the Senate Banking Committee. The Senate Banking Committee, chaired by Senator Richard Shelby (R-Ala.), called a hearing to solicit input from the Treasury Department and other interested parties on whether the federal government should continue to provide a terrorism insurance backstop, in the event of another catastrophic act of terrorism, upon the expiration of the Terrorism Risk Insurance Act of 2002 (TRIA) at the end of 2005.
“All of CIATs members were united in their support for the enactment of the Terrorism Risk Insurance Act of 2002. All remain equally determined to see the TRIA program continue for the intermediate term because the conditions that made it necessary still are with us. The threat of foreign terrorist acts in the United States has not diminished; if anything, it may have increased since TRIA was enacted,” Mr. Nassetta cautioned Congress. “At the same time, the insurance market has not recovered, at least not with respect to this peril. While some limited reinsurance capacity has returned, nothing near what is needed to sustain the economy is foreseeable under current conditions.”
The majority of the Senators present at the hearing voiced strong support for the extension of TRIA and for the extension of the “make available” provision which is set to expire at the end of 2004 unless the Treasury Secretary extends it for another year. CIAT and BOMA would like to see Congress act this year to pass the two-year extension.
Information on CIAT and Nassettas testimony may be found from BOMA International.
