Coalition sets goals for federal terrorism insurance backstop

The insurance industry and major policyholders have agreed on an outline for legislation reauthorizing the federal government's terrorism risk insurance backstop, recommending the inclusion of a provision that would provide coverage for nuclear, biological, chemical and radiological attacks.

The Coalition to Insure Against Terrorism, representing the American Insurance Association and companies such as Hilton Hotels Corp. and Marriott International, released its proposal Monday for reauthorizing the federal backstop for terrorism risk insurance, which expires at year's end. The two groups argue that the program should cover losses from a nuclear, biological, chemical or radiological attack above an insurer's retention level.

Insurance groups contend there is no market to write such policies because of the potential liabilities from those attacks. The group also called for eliminating insurer deductibles and co-payments for such nuclear, biological, chemical and radiological attacks as well.

The coalition paper also calls for a permanent extension of the program, the inclusion of acts of domestic terrorism and a trigger no higher than the current $100 million level for federal reimbursement. The outline will serve as the business community's main stance as Congress gears up to tackle reauthorization.

The House Financial Services Capital Markets Subcommittee will hold a hearing on the program Tuesday.

"We believe that consensus between two major stakeholders in the debate over how to structure renewal of [the program] represents an important step forward, which will hopefully inform the discussion among policymakers," said Martin DePoy, coordinator of CIAT's steering committee.

Some lawmakers and consumer groups, however, argue that the insurance industry should take a greater responsibility, noting property-and-casualty insurers realized a record profit of almost $60 billion in 2006. The Consumer Federation of America contends the reauthorization should cover only catastrophic attacks such as nuclear, biological, chemical or radiological attacks but should raise the trigger to cover claims that are more than $100 billion.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.