American Property Casualty Insurance Association
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Eileen Gilligan







April 10, 2014

PCI Reacts to Senate TRIA Bill


WASHINGTON - Nat Wienecke, senior vice president, federal government relations at the Property Casualty Insurers Association of America (PCI) issued the following statement in response to the Terrorism Risk Insurance Act (TRIA) bill introduced by the Senate today.

“We applaud the Senate for introducing a bipartisan, long-term reauthorization of TRIA,” said Wienecke. “PCI and its members appreciate that the Senate bill includes a 7 year reauthorization and also maintains the current thresholds of a $100 million trigger and 20% insurer deductible.

“However, PCI is concerned with the Senate’s proposal to increase each insurer’s co-share by a third, from 15% to 20%, and the impact this will have on the availability and affordability of terrorism insurance for consumers,” continued Wienecke. “Insurers are already being required under TRIA to provide terrorism coverage that goes well beyond their normal loss tolerance. Increasing the co-share will further undermine economic resiliency. The U.S. economy and the insurance markets are especially vulnerable to attacks involving nuclear, biological, chemical and radiological (NBCR) weapons. Insuring against NBCR is essentially trying to cover the failure of the government to interdict a war-like attack against our country. What available insurance protection is available for NBCR will become increasingly unstable if TRIA’s coverage is narrowed.”

In the current Terrorism Risk Insurance Act, each insurer is responsible for a co-share of 15% of its certified terrorism losses exceeding its insurance deductible for attacks exceeding a $100 million trigger.

“TRIA has been successful since it was enacted in 2002. TRIA is a national security program that protects taxpayers. Having a terrorism risk insurance plan in place before the next attack protects our country’s economic resiliency and security at nearly no cost to the taxpayers,” continued Wienecke.

“We look forward to continuing the discussion with the Senate and working through our concerns on reauthorizing TRIA in the form that works for the policyholders, our members, and the American economy,” concluded Wienecke.


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.