CBI’s Statement on PRIA to Congressional Subcommittee

PRIA would replicate and extrapolate known defects in the Terrorism Risk Insurance Program.

Photo by Darren Halstead on Unsplash

The House Financial Services Committee’s Subcommittee on Housing, Community Development and Insurance will hold a hearing on Thursday November 19, 2020 entitled Insuring Against a Pandemic: Challenges and Solutions for Policyholders and Insurers. The hearing is expected to focus on the Pandemic Risk Insurance Act (HR 7011) introduced in May by Representative Maloney of New York.

The Centers for Better Insurance is submitting the attached Statement for the Record which warns this well-intended legislation (as well as the excess program in the joint industry Business Continuity Protection Program) would:

PRIA is based on the Terrorism Risk Insurance Act (TRIA) thereby adopting and amplifying its two greatest shortcomings:

The American taxpayer in on the hook for “only” 80% of the $100 billion TRIA program. Perhaps continued tolerance of that program’s well-known defects is somehow justifiable. However, there can be no justification to replicate these defects and extrapolate them into a taxpayer liability for 95% of a $750 billion program.



Founder and Managing Member, Centers for Better Insurance, LLC

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