Swiss Re calls for TRIA extension

Swiss Re urged for the renewal of the Terrorism Risk Insurance Act (TRIA) during the reinsurer’s 2006 year-end economic forum and 2007 insurance industry review.Swiss Re based its position on the belief that the insurance industry isn’t equipped to deal with terrorism on its own, according to a report on the forum published by MarketWatch.According to Forbes.com, Roger Ferguson, Swiss Re’s head of financial services, encouraged the renewal of TRIA.”An explicit government terrorism risk backstop would offer many advantages and a broader sharing of this kind of risk would also make lower premium rates possible, thereby reducing the threat of bankruptcy,” Ferguson is quoted as saying on the Forbes Web site.Ferguson also proposed that “a private-public partnership offers the most promising means of insuring against and recovering from a major terrorism attack.”According to MaketWatch, Ferguson said the government might be expected to finance the claims anyway, should the insurance firms fail to do so.According to a statement on their Web site, RIMS has been on the forefront in calling for the extension of TRIA. “Time is of the essence,” the statement reads. “RIMS is prepared and willing to work with public and private organizations to develop a solution or consensus opinion in order to have a unified approach before Congress.”TRIA is due to expire on Dec. 31, 2007.