Brokers Back TRIA Extension
Eighty percent of those at the nation's leading commercial insurance brokerage firms want the federal Terrorism Risk Insurance Act extended when it expires at the end of 2005, even though interest in the product is low among buyers, an association survey revealed.
The Washington-based Council of Insurance Agents & Brokers reported that of the 126 survey respondents, half said that fewer than 20 percent of their clients are buying the federally backed terrorism coverage. Brokers attributed the low interest to the coverage's high cost and clients' belief they are not likely to be targets of terrorism.
Most brokers still want to see TRIA continue, however, because they are concerned that if the program expires, the properties that need the coverage the most would be unable to find it.
About 70 percent of the respondents said they think terrorism coverage is more available now than it was a year ago. In part, they credited this to the fact that there has not been another attack in the United States like that on Sept. 11, 2001.
“Because negotiations over renewals for large accounts typically begin several months before the policy renewal date, we could start seeing the impact of the expiration of TRIA as early as this fall for January 2005 renewals,” warned CIAB President Ken Crerar.
Reproduced from National Underwriter Edition, April 2, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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