At hearing, industry goes to bat for TRIA extension
From PropertyCasualty360:
However, in a statement released in conjunction with the hearing, R.J. Lehmann, senior fellow and public affairs director for the R Street Institute, said that while we don’t live in the “ideal world” where TRIA would be unnecessary, there remains a number of options Congress should explore to draw on private-sector solutions and better protect taxpayers as it looks forward to TRIA’s expiration.
Among those options: examining whether the program should look to transfer at least a portion of its $100 billion of exposure to the global-reinsurance markets through traditional retrocession agreements, catastrophe bonds and other alternative risk transfer mechanisms.
“This would better protect taxpayers, serve to ensure terrorism risk is not concentrated within the United States and encourage development of catastrophe models and other underwriting tools to better assess terror risk,” Lehmann said.
