The construction industry and real estate development could be hampered by the U.S. Congress’s failure to renew the Terrorism Risk Insurance Act (TRIA).
Insurance industry experts say without federal terrorism reinsurance in place for 2015, resulting canceled property/casualty insurance coverage and market chaos could be disruptive to the economy.
"A major terrorist attack occurring without a TRIA law on the books will be far more disruptive to the U.S. economy than one where TRIA is in place," saidInsurance Information Institute President Robert Hartwig. “Terrorism insurance policies are going to lapse in 2015, and insurers will be under no obligation to renew them, adversely impacting the construction, energy, and real estate industries, among others.”
Federal terrorism reinsurance had helped stabilize the market in the wake of the Sept. 11, 2011 terrorist attacks, and it had been renewed several times since. There was widespread bipartisan support for TRIA renewal, but retiring U.S. Sen. Tom Coburn, an Oklahoma Republican, held up passage. Coburn objected to a measure included in the bill that would have set up the National Association of Registered Agents and Brokers, an entity that would have potentially bypassed state regulators.
One positive sign: A.M. Best said it “has determined that no rating actions on insurers previously identified as over-reliant upon [TRIA] are necessary at this time.” The rating agency said it reviewed action plans from insurance carriers addressing what they would do if TRIA was not renewed and concluded that “sufficient mitigation initiatives were developed to avoid a material impact on a rating unit’s financial strength.”
(http://www.insurancejournal.com/news/national/2014/12/18/350561.htm)
Related Stories
| Oct 31, 2012
Investigators look into crane severely damaged by Sandy in Manhattan
Investigators are examining a construction crane collapse atop a $1.5 billion luxury high-rise in midtown Manhattan due to high winds during Hurricane Sandy.
| Oct 31, 2012
Construction error suspected in Miami-Dade College garage collapse
A construction error is the chief suspect in the partial collapse of a parking garage at Miami-Dade College in Doral, FL.
| Oct 31, 2012
New European laws on timber will go into effect in March 2013
A new European Union timber regulation prohibits the “placing on the market of illegally harvested timber or timber products derived from such timber.”
| Oct 31, 2012
MIT models show roofs' capacity for solar energy in Cambridge, Mass.
A new mapping tool from the Massachusetts Institute of Technology and a Boston design firm can calculate rooftops' capacity for solar energy.
| Oct 31, 2012
Demand for living roofs, walls to reach $7.7 billion by 2017
The demand for green roofs and living walls is expected to climb from $5.3 billion in 2011 to $7.7 billion in 2017, according to a report from Lux Research.
| Oct 25, 2012
Philadelphia councilmen move to crack down on contractors working without licenses, permits
Two Philadelphia city councilmen are trying to crack down on the "underground economy" of developers and contractors who work without licenses and permits, pay cash under the table, and operate unsafe job sites.
| Oct 25, 2012
OSHA and NIOSH offer Spanish version of nail gun safety document
The Occupational Safety and Health Administration and the National Institute for Occupational Safety and Health have made available a Spanish version of “Nail Gun Safety - A Guide for Construction Contractors.”
| Oct 25, 2012
AGC holding webinar on sequestration’s potential impacts on the construction industry
AGC will hold a free webinar on sequestration and its potential impact on federal construction contractors on Nov. 7.
