WASHINGTON, D.C., Sept. 11, 2012 — The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) today testified in a hearing before the U.S. House Committee on Financial Services Subcommittee on Insurance, Housing and Community Opportunity titled, “TRIA at Ten Years: The Future of the Terrorism Risk Insurance Program.”
Jon Jensen, an independent agent from South Carolina and Big “I” Government Affairs Committee chairman, represented the association. He is president of Correll Insurance Group, headquartered in Spartanburg, S.C.
Jensen testified as part of a Congressional review of the Terrorism Risk Insurance Program (TRIP) which was originally enacted in response to the severe market disruptions following the Sept. 11, 2001 attacks. The program was later extended and modified in 2005 and again in 2007, with its latest expiration set for the end of 2014. This hearing is the first on the issue since the last reauthorization effort, and the Big “I” was the only agent group invited to testify.
In his testimony, Jensen pointed out that TRIA “successfully stabilized the insurance marketplace and helped eliminate the market disruptions and uncertainties that followed the September 11th attacks.”
“Congress wisely structured the program so as to involve the private sector as much as possible and created a successful and limited public-private partnership that has operated at virtually no cost to taxpayers,” said Jensen. In addition, Jensen discussed many of the challenges the insurance industry faced before TRIA and the tremendous risks to the economy if the program is allowed to expire with no public policy solution in its place. “In short, we [the Big ‘I’] believe the termination of TRIP would have destabilizing effects on the economy in many regions of the country.” Jensen continued, “the Big “I” believes that TRIP has worked well and that some form of limited federal involvement is still needed to maintain a stabilized and viable market for terrorism insurance.”
To read Jensen’s written statement click HERE. Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of approximately a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.