Webel 2 - TRIA

Purpose of TRIA
- Temp terrorism insurance program to calm insurance markets thru gov sharing
- Give private industry time to gather data and create structures and capacity for coverage
Extension of TRIA
Reducing gov exposure from TRIA by:
1. Increasing min covered event size
2. Raising insurer ded
3. Reducing gov share
4. Increasing post-event recoupment
Terrorism Risk Insurance Program Reauthorization Act of 2015
1. Extend TRIA 6 years, until end of 2020
2. Decrease fed sharing gradually from 85% to 80%
3. Increase program trigger by 20m per year until 200m (from 100m in 2015)
4. Increase insurance market agg retention by 2b per year until 37.5b (from 27.5b)
5. Extend recoupment by 7 years
6. Change recoupment to 140% of fed payments
Arguments for and against extending
- for:
  - insurers not ready to insure
  - social purpose
- against:
  - could be replace by CAT bonds
  - reduces incentive for loss control

Author

youngt

339066

Card Set

Webel 2 - TRIA

Description

Webel 2 - Terrorism Risk Insurance Legislation in the 114th Congress: Issue Summary and Side-by-Side Analysis

Updated

2018-04-23T13:50:12Z

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