American Property Casualty Insurance Association
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Contact:

Eileen Gilligan

Phone:

202-639-0497

Email:

Eileen.Gilligan@pciaa.net

 

 

FOR RELEASE ON RECEIPT

April 10, 2014

PCI Applauds RAND Study on the Possible Impact of TRIA’s Expiration on Federal Spending

 

WASHINGTON – Robert Gordon, senior vice president, policy development and research for the Property Casualty Insurers Association of America (PCI) issued the following statement today in support of RAND Corporation’s study, “The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire.” The study is the second in a series on the Terrorism Risk Insurance Act.

“RAND’s study underscores the extremely important role of TRIA as a taxpayer protection program,” said Gordon. “TRIA is an unusual example of a government program that has worked continuously for over a decade at essentially no estimated cost to the taxpayers to grow jobs, the economy, and protect national security. Equally important, RAND’s study demonstrates that TRIA saves taxpayers significant money by greatly reducing the need for federal disaster assistance following a catastrophic terrorist attack on our country.”

The RAND Center for Catastrophic Risk Management and Compensation study, “The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire” can be found here. PCI is a sponsor of the research.

According to RAND, “From the perspective of federal spending, TRIA therefore appears to be a reasonable federal policy. In the absence of a terrorist attack, it costs taxpayers little, and in the event of a terrorist attack comparable to any experienced before, it is expected to save taxpayers money.”

“As Congress revisits TRIA, it is appropriate to inquire whether the taxpayer protections are working as intended or whether additional reforms should be considered. However, the current TRIA protection plan is working extremely well for taxpayers. Any undermining of the protections by making TRIA more remote risks destabilizing the available terrorism protections for consumers. PCI will continue to work with Congress on a long-term reauthorization of TRIA in the form that works for the policyholders, our members, and the American economy,” concluded Gordon.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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