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
| Apr 17, 2013
Fenestration Council allows some shading system, dynamic glazing to be rated for U-Factor
The National Fenestration Rating Council (NFRC) approved changes to its NFRC 100 and NFRC 200 standards, allowing certain shading devices to be rated for U-factor and Solar Heat Gain Coefficient.
| Apr 17, 2013
LEED 2009 quarterly interpretations, addenda now available
Quarterly interpretations and addenda to the LEED 2009 rating systems and reference guides are now available.
| Apr 17, 2013
DOE’s Lawrence Berkeley Lab researchers developing new indoor air pollution standards
The U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) researchers are working on new building standards after discovering previously unknown indoor air pollutants.
| Apr 16, 2013
RMJM acquired by Duthus Investments for £12 million
Sir Fraser Morrison, the owner and chairman of architect RMJM, is the backer behind the investment firm that bought RMJM for £11m in late March.
| Apr 10, 2013
ASHRAE publishes second edition to HVAC manual for healthcare facilities
The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) has published a second edition of its “HVAC Design Manual for Hospitals and Clinics.”
| Apr 10, 2013
Concrete Reinforcing Steel Institute accredited by ANSI as standards developer
The Concrete Reinforcing Steel Institute (CRSI) was recently accredited by the American National Standards Institute (ANSI) as an ANSI Accredited Standards Developer (ASD).
| Apr 10, 2013
DOD should continue LEED-Silver or equivalent rating standard, says NRC
The Department of Defense should continue to require that its new buildings or major renovations to facilities be designed to achieve a LEED-Silver or equivalent rating, says a new report from the National Research Council.
| Apr 10, 2013
EPA proposes emissions rules affecting light construction vehicles
The Environmental Protection Agency has proposed air-pollution standards that it says will reduce the amount of sulfur in U.S. gasoline by two-thirds and impose fleet-wide pollution limits on new vehicles.
| Apr 10, 2013
New skyscraper designs raising the bar on green standards
Though most new skyscraper designs have a traditional look, they are including a wider array of sustainable elements to use energy and water more efficiently and improve human health.
| Apr 5, 2013
Lack of national standards on design of bioterror labs creates higher risk for accidents, panel says
U.S. labs that conduct research on bioterror germs such as anthrax are at risk for accidents because they do not have uniform design and operation standards, according to a Congressional investigative group.
