NEW YORK (June 17, 2013, 2013) – With the deadline for the extension of TRIA approaching, RIMS, the risk management society™, submitted testimony and leant its support to New York City Council’s Committee on State and Federal Legislation’s effort to bring attention to the importance of a long term extension of TRIA. The Committee held a hearing today to discuss the economic ramifications of TRIA expiration and to consider a resolution calling on the United States Congress to pass legislation that would extend the TRIA program.
The testimony submitted by RIMS Board Member and New York City Chapter Member Lori Seidenberg highlighted the Society’s top concerns for the expiration of TRIA, as well as implications of its expiration on numerous industries that significantly contribute to the economic vitality of many urban areas like New York City. The testimony says:
“The inability to secure sufficient insurance coverage for acts of terrorism could result in the inability to secure financing for future construction projects …Without adequate availability of terrorism coverage many companies would not be able to comply with lender covenants within mortgages that require coverage. This, in turn, would impede the ability to fund real estate transactions and would limit the normal functions of the real estate market.”
The real estate market is one of several industries noted in the testimony that would be impacted by the expiration of TRIA:
“Public and private transportation, schools and hospitals, special and sporting events, and certain manufacturing processes face terrorism exposure and need adequate coverage as well. Without TRIA, these entities may not be able to adequately cover themselves against acts of terror, thus placing their individual entities, and communities as a whole, at risk of devastating financial losses if a terrorism event were to happen.”
In addition to providing the Committee with findings from RIMS member surveys and other research, RIMS also offered additional resources to the Committee to help it strengthen its advocacy for the extension of TRIA.
The full testimony can be read here.
