Travelers has announced that it supports attempts in Congress to extend the terrorism risk insurance program (Tria).
The House Financial Services Committee is currently debating H.R. 4871, The TRIA Reform Act of 2014.
The legislation is sponsored by Rep. Jeb Hensarling, chairman of the House Financial Services Committee, and Rep. Randy Neugebauer, and is scheduled for consideration by the committee on June 19, 2014.
"The terrorism insurance program protects the economy as a whole by providing a structure to rebuild in the wake of an event," said Travelers chairman and chief executive Jay Fishman. "Extending the program will provide certainty for policyholders, facilitate important reforms that increase the private sector's capacity for managing conventional risk, and maintain a robust public-private program for managing large scale events."
On June 3, 2014, the Senate Committee on Banking, Housing, and Urban Development approved S. 2244, a bill that extends the program for seven years and enhances taxpayer protection.
The House bill will likely seek extend the programme for five years and will most likely impose some limitations on the programme rather than rubber stamping a straight extension.
Fishman added, "We will continue to work with members of the House, Senate and Administration to extend the terrorism insurance program before it expires at the end of this year."
Travelers is just the latest company to voice its support for Tria extension with the insurance industry almost unanimous in its support for the programme.
Broker Guy Carpenter voiced its own support for an extension earlier this week and stated that declining capacity in the terrorism insurance market combined with increased terrorist events around the globe made the renewal of Tria essential for the US market.