RIMS Testifies at US House Hearing for Terrorism Risk Insurance Program Reauthorization Act Extension
New York, NY (WorkersCompensation.com) - At the first hearing held by the United States House of Representatives, Subcommittee on Insurance, Housing and Community Opportunity to determine the best strategies for extending the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) , former RIMS President Janice Ochenkowski delivered testimony on behalf of the Society that emphasized the importance of reauthorizing this critical legislation. The act, that protects organizations’ ability to purchase sufficient insurance to cover acts of terrorism, is currently under review and set to expire on December 31, 2014.
“RIMS applauds Congress for taking the first step to reauthorize TRIPRA and its foresight in recognizing the significance of ensuring that adequate insurance for acts of terrorism remains readily available to all businesses,” said Ms. Ochenkowski, who is also the Managing Director at Jones Lang LaSalle responsible for global risk management. “Failure to reauthorize would have a devastating impact on so many industries – real estate, public and private transportation entities, schools, hospitals, event venues and manufacturers to name a few. RIMS is honored to be called on for our collective expertise and to play an active role in developing a long-term solution. ”
RIMS supports the following principles in development of a long-term solution for TRIPRA:
· Without a TRIA-type program, many entities will simply be self-insured due to lack of availability or affordability of coverage or both - leaving their companies and their workers exposed to an event that could bankrupt the company.
· The new program should ensure an orderly and efficient response to minimize any market disruptions and ensure benefits are available to any victims - individuals or companies – from a catastrophic loss scenario.
· A private and public partnership provides the best alternative to addressing the long-term needs of availability and affordability of insurance to cover acts of terrorism.
· The solution needs to address the long-term availability and affordability of insurance coverage for nuclear, biological, chemical, and radiological events caused by terrorism.
· All commercial property, workers’ compensation, auto and general liability lines should be included in any new plan.
· Insurance companies writing commercial lines should be required to participate in the program and be required to make coverage available for acts of terrorism.
· Tax incentives and eligibility for participation in the program should be considered to encourage creation of private insurance capacity.
To view the full testimony and to see other RIMS Position Statements visit, www.rims.org/externalaffairs/PositionStatements.
As the preeminent organization dedicated to advancing the practice of risk management, RIMS (the Risk and Insurance Management Society, Inc.) is a global not-for-profit organization representing more than 3,500 industrial, service, nonprofit, charitable and government entities throughout the world. Founded in 1950, RIMS brings networking, professional development and education opportunities to its membership of more than 10,000 risk management professionals who operate in more than 120 countries. For more information on RIMS, visit www.RIMS.org.