An insurance broker recently wrote to PC360 with questions about the Terrorism Risk Insurance Act, concerned that the program essentially benefits a few at the expense of many. He contends average business owners would never see a benefit from TRIA, and wonders who is making money off of the program.

The reader's questions come as debate heats up over what legislation extending the program should look like (the current reauthorization of TRIA, enacted in 2007, expires on Dec. 31). Some members of Congress are looking to scale back the program and shift more risk to the private sector. Rep. Randy Neugebauer, R-Texas, for example, tells PC360 "TRIA was meant to be a temporary program."

Regarding legislation he unveiled yesterday along with Rep. Jeb Hensarling, R-Texas, that would extend TRIA for five years but increase the program's trigger over that time from $100 million to $500 million, Neugebauer says, "We are transitioning the program in order to transfer risk where it belongs—to the private sector; to the professionals in the insurance industry," adding that these professionals "are getting compensated for taking that risk; the taxpayers are not."