R.J. Lehmann, the editor-in-chief and a senior fellow with th R Street Institute, a conservative think tank in Washington, DC, writes in Thursday's edition of The Hill, that the Terrorism Risk Insurance Program not only needs to be renewed this session, it needs to be reformed as well.
The problem? The program as it stands is simply too big.
"As the reauthorization debate plays out once again – a fight that unites conservative budget hawks with those on the left concerned with corporate cronyism, just as it unites both Democrats and Republicans from big city districts with the insurance and commercial real industries – we believe a responsible middle ground can be found to extend the program with reforms that further shrink its size and scope," Lehmann writes.
"The global insurance and reinsurance industries have changed dramatically in the past decade, and the federal terrorism insurance program should be updated to reflect those changes. Faced with record levels of capital, the reinsurance industry has been clamoring for the opportunity to take on more catastrophe business, including coverage for terrorism."
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