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
| May 3, 2012
Green-roof requirement now includes industrial facilities in Toronto
A mandate that requires installation of green roofs on new commercial and residential buildings in Toronto has been expanded to include industrial facilities.
| May 3, 2012
Innovative wastewater treatment helps achieve LEED rating
LEED for New Construction, Neighborhood Development and the LEED Volume Program offer some ways to achieve LEED points when dealing with wastewater treatment.
| Apr 26, 2012
Lack of bolts on steel support caused collapse at Cincinnati casino
Too few bolts connecting horizontal steel support beams with vertical steel columns was the cause of January’s construction accident at Horseshoe Casino Cincinnati, according to the report of the Occupational Safety and Health Administration.
| Apr 26, 2012
OSHA criticized for taking too long to roll out safety rules
The Occupational Safety and Health Administration takes far too long to adopt new safety regulations compared to other agencies’ development of rules, safety experts said during a Senate hearing.
| Apr 26, 2012
Contractors fear that GSA scandal will lead to fewer federal construction contracts
In the wake of the recent scandal at the General Services Administration in which workers spent lavishly at a Las Vegas conference, a spokesman for Associated General Contractors of America said contractors are worried the scandal will result in cuts to GSA's construction and renovation budgets.
| Apr 26, 2012
Developers can use LEED wastewater credits to help gain approvals in environmentally sensitive locales
Those wanting to pursue development in heavily regulated and environmentally sensitive areas are benefiting by designing projects that qualify for LEED points, even if the project as a whole does not achieve certification.
| Apr 26, 2012
New York City Council moves to license elevator mechanics
New York’s City Council introduced a measure last week that would require the city’s 7,000 elevator mechanics to meet national standards and be licensed by the city.
| Apr 23, 2012
AAMA releases updated specification for anodized aluminum
AAMA 611-12 describes test procedures and requirements for high performance (Class I) and commercial (Class II) architectural quality aluminum oxide coatings applied to aluminum extrusions and panels for architectural products.
