The construction industry and real estate development could be hampered by the U.S. Congress’s failure to renew the Terrorism Risk Insurance Act (TRIA).
Insurance industry experts say without federal terrorism reinsurance in place for 2015, resulting canceled property/casualty insurance coverage and market chaos could be disruptive to the economy.
"A major terrorist attack occurring without a TRIA law on the books will be far more disruptive to the U.S. economy than one where TRIA is in place," saidInsurance Information Institute President Robert Hartwig. “Terrorism insurance policies are going to lapse in 2015, and insurers will be under no obligation to renew them, adversely impacting the construction, energy, and real estate industries, among others.”
Federal terrorism reinsurance had helped stabilize the market in the wake of the Sept. 11, 2011 terrorist attacks, and it had been renewed several times since. There was widespread bipartisan support for TRIA renewal, but retiring U.S. Sen. Tom Coburn, an Oklahoma Republican, held up passage. Coburn objected to a measure included in the bill that would have set up the National Association of Registered Agents and Brokers, an entity that would have potentially bypassed state regulators.
One positive sign: A.M. Best said it “has determined that no rating actions on insurers previously identified as over-reliant upon [TRIA] are necessary at this time.” The rating agency said it reviewed action plans from insurance carriers addressing what they would do if TRIA was not renewed and concluded that “sufficient mitigation initiatives were developed to avoid a material impact on a rating unit’s financial strength.”
(http://www.insurancejournal.com/news/national/2014/12/18/350561.htm)
Related Stories
Codes and Standards | Aug 24, 2018
Resilience, sustainability emphasized in plans for new 23,000-acre city in the Philippines
“A backup for when Manila fails.”
Codes and Standards | Aug 23, 2018
Cities promote deconstruction of old homes with mixed results
Market factors complicate efforts to recycle material from old structures.
Codes and Standards | Aug 22, 2018
Oregon is first state to change building code to allow tall mass timber buildings
Statewide alternate method allows early technical consideration and approval.
Codes and Standards | Aug 21, 2018
First mass timber panel made from structural composite lumber gets APA certification
Said to be much more cost effective than CLT options.
Codes and Standards | Aug 17, 2018
Zoning changes can be crucial to filling large, empty retail spaces
Alternative uses often require action by local officials.
Codes and Standards | Aug 16, 2018
Nearly a quarter of opioid overdose deaths attributable to construction workers
Massachusetts public health study finds pressure to work in pain contributes to problem.
Codes and Standards | Aug 15, 2018
ICC creates new committee on building safety and security
Will include experts from many different disciplines.
Codes and Standards | Aug 14, 2018
Philadelphia adopts 2018 IECC energy code, while state opts for 2015 code
City is one of the first jurisdictions to adopt newest code.
Codes and Standards | Aug 9, 2018
Denver’s goal of 100% renewable energy by 2030 includes net zero energy buildings
Community solar programs for low income residents part of plan.
Codes and Standards | Aug 8, 2018
Too much parking in U.S. cities proving costly
As car ownership rates drop, excess parking seems more wasteful.