WASHINGTON, DC—Ed Walter, president and CEO of Host Hotels & Resorts and a member of the American Hotel & Lodging Association (AH&LA), will testify this morning before the Senate Banking Committee on the need to extend the Terrorism Risk Insurance Program (TRIA).
Today’s hearing, “Reauthorizing TRIA: The State of the Terrorism Risk Insurance Market, Part II,” has been convened by Chairman Tim Johnson (D-SD). First passed by Congress in 2002 in response to the terrorist attacks of September 11, 2001, TRIA was created to provide a federal backstop for terrorism insurance coverage, which had become largely unavailable or cost prohibitive. The program was renewed in 2005 and again in 2007 (as TRIPRA). The current extension is due to expire this December.
“The extension of TRIA is a high priority for the lodging industry in 2014, and it is vital that Congress take action now to extend the program,” said Katherine Lugar, AH&LA president/CEO. “Many hoteliers are increasingly faced with notices that their terrorism insurance will not be extended, putting in jeopardy future capital projects and opportunities for economic growth and job creation. It is important to note that the program mandates that ‘first dollar losses’ be paid by insurers and policy holders and not by taxpayers or the government, and that TRIA is only triggered in the event of a major event and after individual insurer loss thresholds are met. We thank Chairman Johnson for convening today’s hearing and look forward to working closely with members of the Senate, the House of Representatives, and the Administration to secure an extension to this vital backstop for economic continuity and recovery.”