Welcome!

News Feed Item

RAND Study: TRIA Saves Taxpayers Money; Roundtable Welcomes Bipartisan Senate Bill to Extend TRIA

WASHINGTON, April 10, 2014 /PRNewswire-USNewswire/ -- The Real Estate Roundtable today welcomed the findings of a RAND Corp. report that the nation's Terrorism Risk Insurance Act (TRIA) helps protect U.S. taxpayers — particularly for catastrophic events on the scale of 9/11 — and that the program's expiration at year-end would mean bigger federal outlays in the event of future terrorist attacks. The Roundtable is also encouraged by the introduction of a bipartisan Senate bill today that would extend TRIA for seven years, while making key reforms to further reduce taxpayer exposure.

Real Estate Roundtable President and CEO Jeffrey DeBoer.

"As the RAND study demonstrates, keeping TRIA in place is considerably cheaper for the federal government than allowing it to expire," said Roundtable President and CEO Jeffrey D. DeBoer, noting that there have been "zero" outlays since the program's original enactment in Nov. 2002. "Unless the law is reauthorized — and the sooner the better, given the impacts already being felt by policyholders across the country — terrorism risk will again be uninsurable, the nation will face unnecessary economic headwinds, and jobs will be lost," he added.

The RAND study, titled "The Impact of Eliminating the Terrorism Risk Insurance Program on Federal Spending," concludes that, for terrorist attacks with losses up to about $40 billion, taxpayers end up paying less with TRIA in place than if the law is allowed to sunset. Under the program, government spending is not triggered until losses exceed $30 billion and until significant insurer deductibles are met (20% of prior-year direct earned premiums for covered commercial lines). Even then, the government pays 85 percent, with mandatory recoupment from policyholders up to $27.5 billion and additional recoupment at the Treasury Secretary's discretion. (For this reason, the Congressional Budget Office has "scored" the current program at zero.)

The TRIA bill unveiled by Senator Charles Schumer (D-NY) — with Senators Dean Heller (R-NV), Mark Kirk (R-IL), Mike Johanns (R-NE), Jack Reed (D-RI) and Christopher Murphy (D-CT) as co-sponsors — would increase insurer co-pays from 15% to 20% for losses above the $30 billion threshold, while increasing the recoupment amount by $10 billion, to $37.5 billion. Senate Banking Chairman Tim Johnson (D-SD) and Ranking Republican Michael Crapo (R-ID) reportedly participated in the bipartisan talks leading up to today's announcement, and may sign onto the bill as well.

Without TRIA, the RAND study suggested, terrorism insurance is expected to become far less available (as it did after 9/11) — prompting more businesses to go uninsured, and, thus, increasing the likelihood that the federal government would need to step in with billions of dollars in emergency disaster aid. According to RAND, an attack equivalent to 9/11 would now cause insured losses of about $33 billion.

In The Roundtable's view, TRIA and its subsequent extensions protect taxpayers by enabling economic activity to proceed in the face of ongoing terrorist threats; allowing the economy to recover more quickly in the event of an actual attack; and reducing federal spending in the event of an attack comparable to 9/11.

"Terrorism is a unique and ever changing risk that is virtually impossible to model," said DeBoer. "TRIA helps markets work in the face of this unpredictability, providing a pool of private capital that absorbs first losses — before one dime of taxpayer money is ever spent.  TRIA is also critical to commercial real estate's ability to obtain financing — and, thus, its continued recovery from recession — since lenders will not make loans without terrorism risk coverage on the collateral."

"For the sake of our economy — and to avert a job-killing credit crunch in commercial real estate — Congress must reauthorize TRIA and do so quickly. Time is of the essence," DeBoer concluded.

The study (www.rand.org) was prepared by the RAND Center for Catastrophic Risk Management and Compensation, and is the second of three RAND policy briefs being issued on TRIA this year.

www.rer.org 

Photo - http://photos.prnewswire.com/prnh/20130520/DC17541

SOURCE Real Estate Roundtable

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.