New York’s Financial Services Superintendent Benjamin Lawsky has directed insurers that are licensed to write commercial property or liability business lines in the state to submit information on how they are responding to Congress’ failure so far to reauthorize the Terrorism Risk Insurance Act (TRIA).
The 113th Congress adjourned without renewing TRIA on Dec. 16, leaving it to expire at the end of the year. Lobbyists for insurers, real estate financiers and businesses are urging quick renewal of the program when the 114th Congress convenes on Jan. 6.
Lawsky said in a letter sent to insurers on Dec. 26 that they have until Jan. 12 to provide written responses to seven multi-part questions from the New York Department of Financial Services (DFS).
The DFS said the letter was sent out to 546 insurers in total, including insurance units of The Allstate Corp., American International Group Inc., Berkshire Hathaway Inc., Chubb Corp., The Hartford Financial Services Group Inc., and The Travelers Cos.
“As you know, the United States Congress failed to reauthorize the Terrorism Risk Insurance Program Reauthorization Act of 2007,” Lawsky said in the letter. He said his department is deeply concerned about the negative economic impact this failure — unless promptly rectified — could have on New York’s construction and insurance industries, as well as other related sectors.
“As such, we are requesting the following information to better assess the pending damage — economic and otherwise — from the imminent expiration of TRIA on Dec. 31,2014,” Lawsky said in the letter.
“This request is being addressed to all insurers that are licensed to write lines of commercial property or liability business, including workers compensation, in the State of New York, and is limited to information concerning risks domiciled or written in the State of New York,” said Lawsky.
The questions include whether the insurers plan to non-renew any policies that are subject to coverage under TRIA, and if so, which lines of business, what types of policies, which business segments and which geographical areas the insurers are looking to non-renew.
The department also asks whether the insurers plan to limit writing of new business for any lines of business, and whether they plan to take any rate action for any lines of business, business segments or geographical areas.
Insurers are also directed to answer whether they plan to reduce the available limits of liability for any lines of business, business segments or geographical areas, and whether their reinsurance agreements are affected by TRIA’s non-renewal.
The following is a copy of the letter:
Conn. Regulator: TRIA Renewal Must Be a Top Priority for New Congress
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With TRIA Renewal Efforts Killed, Some Predict Market Chaos
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