- Specific clarification that coverage is provided by TRIA for all forms of terrorism — including nuclear, biological, chemical and radiological events — if coverage is afforded on the primary policy.
- Modernization of TRIA to reflect new terrorist threats that have emerged — in particular, the risk of cyber terrorism.
- Establishment of a 90-day time period for determining whether or not an act of terrorism is covered by TRIA.
After addressing FACI, Mr. Bueler stated: “The continuation of TRIA is essential. Non-renewal or a major change in the program will negatively affect the affordability and availability of commercial lines insurance vital to the economy. Since TRIA’s enactment in 2002, the terrorism reinsurance market has become a critical component of risk management strategy for many insurers. A dramatic change in the federal backstop could lead to a contraction in both the insurance and reinsurance marketplace.”Mr. Flatt stressed that TRIA affects the state-regulated workers’ compensation market, especially in the areas of pricing and capacity. “The uncertainty in the market is causing some carriers to reduce their available capacity and aggregate exposures in large cities, and workers’ compensation prices on these risks are certainly going up,” he told members of FACI. The Act has been extended twice since originally enacted in November 2002 as a response to the attacks of September 11, 2001. Mr. Beshar was invited to share Marsh & McLennan's views on TRIA with the Senate Banking Committee at a hearing that has been scheduled for September 25. About Marsh & McLennan Companies MARSH & McLENNAN COMPANIES (NYSE: MMC) is a global professional services firm offering clients advice and solutions in the areas of risk, strategy, and human capital. Marsh is a global leader in insurance broking and risk management; Guy Carpenter is a global leader in providing risk and reinsurance intermediary services; Mercer is a global leader in talent, health, retirement, and investment consulting; and Oliver Wyman is a global leader in management consulting. Marsh & McLennan Companies’ 54,000 colleagues worldwide provide analysis, advice, and transactional capabilities to clients in more than 100 countries. The Company prides itself on being a responsible corporate citizen and making a positive impact in the communities in which it operates. Visit www.mmc.com for more information.