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
| Jun 18, 2014
Pittsboro, N.C., approves massive new development plan
The Pittsboro, N.C., Board of Commissioners approved the master plan for Chatham Park, a massive residential and commercial project that could bring 60,000 people to Pittsboro over several decades.
| Jun 11, 2014
AGC to study causes of construction deaths, injuries
The Associated General Contractors of America is conducting a new study to make job sites safer and search for ways to lower the number of injuries and deaths in the construction industry.
| Jun 11, 2014
U.S. infrastructure quality ranks only 19th in the world
The quality of infrastructure in the U.S. ranks just 19th in the world, trailing countries such as Oman, Portugal, and Spain, according to the World Economic Forum’s Global Competitiveness Report.
| Jun 11, 2014
ISO releases standards for comparing city services worldwide
The International Organization for Standardization (ISO) has created the first standards to compare services of the world’s cities.
| Jun 11, 2014
Federal bill would promote shifting to energy-efficient roofs
A bipartisan proposal from U.S. Reps. Tom Reed, R-N.Y., and Bill Pascrell, D-N.J., would make roof replacement cost less and would help commercial building owners adopt energy-efficient systems.
| Jun 5, 2014
Over budget Homeland Security headquarters project may be canceled
A massive new headquarters for the Department of Homeland Security is more than $1.5 billion over budget, 11 years behind schedule, and may never be completed.
| Jun 5, 2014
Insurance giant sues nearly 200 Illinois communities for failing to prepare for climate change
Farmers Insurance filed nine class action suits against nearly 200 communities in the Chicago area, saying that local governments should have prepared for rising global temperatures that have led to heavier rains and flooding.
| Jun 4, 2014
Dikes, water pumps, and parks will help New York City area be more resilient
The Obama Administration has pledged $1 billion in federal funding to protect the New York City region from flooding like the area experienced from Superstorm Sandy.
| Jun 4, 2014
Green initiative may scuttle high-rise projects in Berkeley, California, critics charge
Volunteers in Berkeley, Calif., are collecting signatures for the “Green Downtown & Public Commons Initiative,” a controversial measure that critics charge would halt some development in the city.
| Jun 2, 2014
Parking structures group launches LEED-type program for parking garages
The Green Parking Council, an affiliate of the International Parking Institute, has launched the Green Garage Certification program, the parking industry equivalent of LEED certification.