February 25, 2014
WASHINGTON – Today, Senate Banking Committee Chairman Tim Johnson (D-SD) held a hearing titled “Reauthorizing TRIA: The State of the Terrorism Risk Insurance Market, Part II.”
Below is Chairman Johnson’s statement as prepared for delivery:
“I call this hearing to order. Today, we hold our second hearing on reauthorizing TRIA and the state of the terrorism risk insurance market.
“At our first hearing last Fall, we heard testimony from experts who reminded the Committee of the history of this program, the need for the program, the extensive layers of taxpayer protections in the program, and the role the private market is able to play because of the existence and structure of the program, not in spite of it. The Committee was also cautioned that any drastic changes to the program could negatively affect small insurance providers and policyholders.
“As I noted at that hearing, the last time TRIA was reauthorized, Congress made very few changes and extended the program for 7 years. Another long extension will promote economic growth, providing certainty for commercial property development and job creation across the country.
“I look forward to hearing from our witnesses today on their views on the issues the Committee needs to consider carefully as we move forward to reauthorize the program. We also appreciate the important insight others, such as the Big “I”, the Financial Services Roundtable, and the Reinsurance Association of America, who have provided us through written statements and past testimony that we will enter into the record.
“There are a number of our colleagues—on and off the Committee, and on both sides of the aisle—who are leaders on this issue. I would like to especially thank Senators Reed, Menendez, Schumer, Tester, Warner, Murphy, Klobachar and Franken on my side of the aisle; and Senators Kirk, Heller, and Blunt on Ranking Member Crapo’s side.
“I look forward to continue working with Ranking Member Crapo and our colleagues to move forward with a bill to extend TRIA in short order.”