ABA, its American Bankers Insurance Association subsidiary and the ABA Securities Association applaud Congress for reauthorizing the Terrorism Risk Insurance Program Reauthorization Act for six years.
TRIA provides an essential reinsurance backstop for insurers, allowing them to fill the need for terrorism coverage policies for our citizens and business communities at reasonable prices and with sufficient limits. Without TRIA, the private market for terrorism insurance would likely be minimal or nonexistent, particularly in metropolitan areas where coverage is needed most.
The banking industry also appreciates a provision in the bill clarifying that end users of derivatives are exempt from posting margin for uncleared swaps. This will help maintain competition in the market and allow bank holding companies of end-user banks to meet their customers’ needs and hedge their capital costs economically.
ABIA members are also delighted that NARAB II, a decade-long effort to create a national insurance producer sales licensing body, passed as part of the TRIA reauthorization. NARAB II offers the insurance industry a more efficient way to serve its customers no matter where in the country they choose to reside.
These measures represent practical steps forward. We look forward to working with the board of the new licensing association as it develops rules for producers who wish to service their customers nationwide. We also look forward to the President signing TRIA into law, which is essential to the successful operation of capital markets.
Thursday, January 8, 2015
ABA Applauds Passage of TRIA
In an press release, James Ballentine, ABA executive vice president of congressional relations and political affairs, said: