RESOURCE
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Industry Experts
Assess Impact Of TRIA
GRADUATE EDUCATION
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IN BUSINESS OVER 60 YEARS
BY ARTHUR D. POSTAL
The insurance industry was hard hit by the sept. 11, 2001 terrorist attack. not only were a number of people
highly respected in the industry killed
when the airplanes hit the World Trade
center, but some in the domestic industry,
especially american international Group,
along with foreign insurers and the reinsurance industry, were particularly affected.
Moreover, the period between October
2001 and november 2002 was an absolute
nightmare for the industry.
it took a full-court press for the industry
and such allies as the real estate industry to
persuade congress and the Bush administration that a federal backup was needed in
order to provide affordable terrorism-risk
insurance to the commercial real estate
market, especially in high-risk markets.
The resulting Terrorism risk insurance
act (Tria), enacted in november 2002
and followed up on with passage of a
seven-year extension enacted in 2007, has
brought certainty and affordable terrorism-risk insurance to america.
Leigh ann Pusey, president and ceO
of the american insurance association,
says, “Tria has provided essential protec-
tions for all sectors of the u.s. economy
and served as a valuable risk-management
tool to better shield businesses and their
infrastructure from the devastation of an
unpredictable, man-made event.”
“it’s not a natural inclination of our
industry to seek government reinsurance,
but, unquestionably, Tria stabilized the
commercial-insurance marketplace in
the post-9/11 chaos,” adds Joel Wood,
senior vice president, government affairs,
for the council of insurance agents &
Brokers.
“as much as we’d like to see otherwise,
we don’t sense a great deal of emerging
global appetite for private terrorism coverage for a catastrophic event,” Wood continues. “There will be an ongoing debate,
no doubt, for years to come about the appropriate federal role.
“Both the Bush and Obama administrations are to be credited for the fact that no
event has occurred that would trigger Tria
payments. But if such an awful event were
to occur, we think the right program is in
place,” Wood concludes.
Frank nutter, president of the reinsurance association of america, notes that,
“Tria was an essential part of the immediate recovery after 9/11 as it provided a
stabilizing role in the commercial market.”
But nutter adds that, given the experience gained over the intervening years
evaluating the threat, “the program’s parameters should be re-evaluated to determine what level of government intervention, if any, is necessary to maintain
market stability. reinsurance markets have
been supportive of terrorism risk in many
ways and prefer not to have government
intervention where it is not needed.”
This index is provided as an additional service
to our readers. The Publisher does not assume any
liability for errors or omissions.
Advertiser Index
ACE ...................................................... 11
acegroup.com/us
ACSTAR ............................................. BC
acstarins.com
Burns & Wilcox ...................................... 7
burnsandwilcox.com
Catlin ........................................ 15, 17, 19
www.catlinUS.com
CNA ........................................................ 4
www.cna.com
Encompass ..................................... IFC-3
encompassinsurance.com
Hartford................................................... 9
hartfordinvestor.com/monarch
Markel .................................................. 20
www.markelinsurance.com
The Institutes ....................................... 21
www.TheInstitutes.org/options
Vertafore ............................................... 23
www.vertafore.com/worksmart
Zurich ................................................ IBC
www.zurichna.com/stories7
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