Oversight Hearing on Terrorism Risk Insurance Program

The Senate Committee on Banking, Housing, and Urban Affairs conducted an oversight hearing on the terrorism risk insurance program. The Honorable Brian Roseboro, Under Secretary for Domestic Finance of the Treasury Department, testified about implementation of the program. He acknowledged that there has been little “up take” of terrorism insurance, but declined to speculate on the reason. Mr. Richard Hillman, General Accounting Office (GAO), testified that significant progress has been made in the implementation of the Terrorism Risk Insurance Act (TRIA), but that Treasury still has numerous tasks unfinished. Mr. John Degnan, The Chubb Corporation, recommended that the TRIA be extended for two additional years. Mr. J. Robert Hunter, Consumer Federation of America, urged that the law be allowed to expire. Mr. Christopher Nassetta, President & CEO, Host Marriott Corporation, urged that the law be extended for the immediate future so that terrorism insurance will continue to be available. Mr. Jacques E. Dubois, Swiss Re America Holding Corporation, testified that the insurance and reinsurance markets are not yet ready to provide terrorism insurance without some level of government backing. Ms. Donna Lee Williams, Commissioner, Delaware Department of Insurance, stated that Treasury should extend the “make available” requirements in TRIA and that Congress should extend coverage under the program. (HK Law).