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
| Jul 17, 2013
U.S. House continues to block enforcement of light bulb standards
The House of Representatives last week voted to block the enforcement of light bulb standards that many say would effectively force people to buy more expensive compact fluorescent bulbs.
| Jul 17, 2013
Should city parking space requirements be abolished?
Some cities are deliberately discouraging construction of new parking spaces by allowing the construction of buildings with a lower ratio of parking spaces to dwellings (as low as 0.75 spaces per residence).
| Jul 17, 2013
EPA continues work on new federal stormwater regulations that are expected to impact development
The Environmental Protection Agency continues to develop new stormwater regulations that are expected to force project developers to write stormwater considerations into designs.
| Jul 11, 2013
DOE releases stricter energy efficiency standards for new federal buildings taking effect in 2014
The Energy Department released stricter energy efficiency standards this month for new federal buildings.
| Jul 11, 2013
Pennsylvania legislators work on bill to update demolition codes following fatal building collapse
Pennsylvania lawmakers are working on a bill to update demolition codes, in the wake of a fatal building collapse in Philadelphia in June.
| Jul 11, 2013
Lawsuit challenges modular apartment project in New York City
A plan to build pre-fab apartment buildings at Atlantic Yards in Brooklyn, N.Y., has been challenged by a lawsuit filed by the Plumbing Foundation in Manhattan Supreme Court.
| Jul 5, 2013
OSHA to launch program to protect workers from isocyanate exposure
The Occupational Safety and Health Administration (OSHA) has announced a new national emphasis program (NEP) to protect workers from serious health effects caused by occupational exposure to isocyanates.
| Jul 5, 2013
New California building code expected to boost energy demand response technology
The California master building code, set to go into effect on Jan. 1, 2014, includes a few changes that could push automated, open-standards-based demand response into the mass market.
| Jul 5, 2013
USGBC adds several new LEED pilot credits
The U.S. Green Building Council has added several new LEED pilot credits to the LEED Pilot Credit Libraryin the past few months.
| Jul 5, 2013
Spray Foam Coalition supports new professional certification program for applicators
The Spray Foam Coalition (SFC) of the American Chemistry Council announced its support of the Spray Polyurethane Foam Alliance’s (SPFA) new Professional Certification Program for spray foam applicators.