Maloney opposes changes to terrorism insurance bill

Rep. Carolyn Maloney (D-N.Y.) opposed on Thursday changes to the Terrorism Risk Insurance Act (TRIA) that were proposed in the TRIA Reform Act bill.

Maloney said the Reform Act bill, which was considered by the House Financial Services Committee on Thursday, would undermine the entire point of TRIA, which is to ensure terrorism insurance is available and affordable to all American businesses.

"While the TRIA Reform Act is a significant improvement over previous drafts, I still have strong concerns with the bill," Maloney said. "Specifically, I oppose the provision that would increase the trigger for the government backstop from $100 million to $500 million. I also oppose treating 'conventional' terrorist attacks differently from so-called 'NBCR attacks' - nuclear, biological, chemical, and radiological attacks."

Maloney said the bill would reduce how much terrorism insurance is available to businesses.

"These changes would drive small- and medium-sized insurers out of the market entirely, which would actually reduce the amount of terrorism insurance available to businesses," Maloney said. "The insurers that remained in the market would be forced to increase rates to levels that are unaffordable to Main Street businesses across the country."

Congress passed TRIA as a three-year temporary program in 2005. It was extended for two years in 2005 and for seven additional years in 2007.

Maloney is the lead Democratic co-sponsor of the TRIA Reauthorization Act of 2013, which would extend the Terrorism Risk Insurance Program through December 31, 2019.