Can someone clarify whether TRIA required Basic or Broad Form (named perils) Property forms to include coverage for Terrorism as defined by TRIA – other than from Explosion or Fire following a terror causes of loss?
Your determining factor should be the nature of the risk – if the risk concerns a commercial enterprise, TRIA should apply. To my understanding of the act TRIA does not reference policy form type.
The Andrew Boris article is accurate, however it does not adequately explain when the insurance industry will be in turmoil, if TRIA is not extended or revised and extended – that date will be 1/2/05, at which point we may be back to post 9/11 terrorism problems. In addition the article does not discuss: a) the lack of comprehensive coverage under TRIA, b)explanation of the “make available” provision of TRIA; c)the increased exposure to insurers, with a 15% retention equal to the entire book of an insurer’s writings of insurance, for any single event. This will be a major burden in 2005, for those few insurers that may may opt not to write terrorism coverage; d) the fact that the Government is resisting extensions for numerous reasons, including the huge budget item that they have to put up in anticipation of a terrorism event; e) the fact that the Government backing is only a cash flow situation, as the Government can assess all policy holders for up to 3% to reimburse the Goverment for its outlay; f)the fact that through TRIA, the Government could have assessed a small amount, e. g. 1% immediately to all policy holders,to fund reimbursement to the Government, if they had to back the insurance industry – they did not take that step which would have removed the budget issue.
I am the CEO of Fisher Harris Shapiro Inc., a risk management and insurance consulting firm specializing in the real estate industry. Our portfolio of clients represent over $160MM of commercial square feet and 42,000 residential units, primarily in New York. We are actively involved in lobbying through Real Estate organizations and in conjunction with some of our major Real Estate owners.
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This is the clearest TRIA article I’ve read to date… Even for those of us in the insurance industry, its difficult to explain. This is perfect!
Can someone clarify whether TRIA required Basic or Broad Form (named perils) Property forms to include coverage for Terrorism as defined by TRIA – other than from Explosion or Fire following a terror causes of loss?
Your determining factor should be the nature of the risk – if the risk concerns a commercial enterprise, TRIA should apply. To my understanding of the act TRIA does not reference policy form type.
The Andrew Boris article is accurate, however it does not adequately explain when the insurance industry will be in turmoil, if TRIA is not extended or revised and extended – that date will be 1/2/05, at which point we may be back to post 9/11 terrorism problems. In addition the article does not discuss: a) the lack of comprehensive coverage under TRIA, b)explanation of the “make available” provision of TRIA; c)the increased exposure to insurers, with a 15% retention equal to the entire book of an insurer’s writings of insurance, for any single event. This will be a major burden in 2005, for those few insurers that may may opt not to write terrorism coverage; d) the fact that the Government is resisting extensions for numerous reasons, including the huge budget item that they have to put up in anticipation of a terrorism event; e) the fact that the Government backing is only a cash flow situation, as the Government can assess all policy holders for up to 3% to reimburse the Goverment for its outlay; f)the fact that through TRIA, the Government could have assessed a small amount, e. g. 1% immediately to all policy holders,to fund reimbursement to the Government, if they had to back the insurance industry – they did not take that step which would have removed the budget issue.
I am the CEO of Fisher Harris Shapiro Inc., a risk management and insurance consulting firm specializing in the real estate industry. Our portfolio of clients represent over $160MM of commercial square feet and 42,000 residential units, primarily in New York. We are actively involved in lobbying through Real Estate organizations and in conjunction with some of our major Real Estate owners.