Today the U.S. Department of Treasury released its assessment of the Terrorism Risk Insurance Act of 2002 (TRIA) and the state of the terrorism insurance marketplace. I am troubled by this flawed study and its recommendations.
It is ironic that in the same week that President Bush reminded us of the continued threat of terrorism at home, the Treasury Department recommended dismantling a program that provides economic stability in the face of those threats, all the while recognizing that TRIA has worked.
Based on limited information the Bush Administration has concluded that market forces will correct the market failures in the private insurance market caused by the risk of terrorism. Far too many experts in the real estate, construction and insurance industries disagree – the very ones confronted with this problem every day – and a good basis for such a conclusion cannot be had with this study.
It is not my intention to allow this Administration to dismantle our national terrorism insurance program, which they themselves have described as “effective.” The Administration should not endanger our economic security and gamble on the potential impact of a terrorist attack. The federal government should take every step to defend our national and economic security from a terrorist attack.
I look forward to the Senate banking committee’s hearings on TRIA and will work for the extension of this important program.