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 | Apr 14, 2015
New York City preparing new codes for evacuation elevators
New York City’s Fire, Buildings, and City Planning Departments in New York are writing rules to govern occupant-evacuation elevators, reflecting a change in philosophy of how to evacuate people from skyscrapers in an emergency.
Codes and Standards | Apr 12, 2015
California imposes stringent new water standards
California is the first state to adopt standards that are more efficient than those set by EPA's WaterSense program.
Codes and Standards | Apr 12, 2015
Virginia surpasses Florida for strictest hurricane building codes
Virginia has edged out Florida as the state with the most stringent hurricane building codes, according to the Institute for Business and Home Safety’s “2015 Rating the States” report.
Codes and Standards | Apr 6, 2015
Industry groups petition for change order reform on federal projects
Nine design and construction associations ask for assurance that funds available for additional work.
Codes and Standards | Apr 6, 2015
DOE releases Better Buildings Workforce Guidelines
The guidelines are aimed at strengthening and streamlining commercial building workforce training and certification programs for workers in energy auditing, building commissioning, building operations, and energy management.
Green | Apr 3, 2015
Georgia may ban use of LEED on state buildings
Georgia's state legislature is considering a measure to require all state buildings to only use green building standards that permit the use of Georgia's lumber.
Codes and Standards | Mar 29, 2015
Elevator shafts a major source of heat loss in New York City
A typical New York apartment building loses thousands of dollars worth of energy every year from leaky elevator shafts that vent warm air at the top of the building and draw in cold air at the bottom, according to a new Urban Green Council report.
Green | Mar 22, 2015
6 myths holding back green building
Sustainable design has proven benefits, so why isn’t it more widely adopted?
Multifamily Housing | Mar 16, 2015
New Jersey Supreme Court puts control of affordable housing agency in the courts
The court said the state’s affordable housing agency had failed to do its job, and effectively transferred the agency's regulatory authority to lower courts.
Codes and Standards | Mar 16, 2015
San Jose adopts bird-friendly building standard
The standard includes avoiding large chunks of transparent or reflective glass and adding fritting.
