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
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that CollabNet (www.collabnet.com) a global leader in enterprise software development and delivery solutions that help customers create high-quality applications at speed, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The CEO of CollabNet Flint Brenton will also present about DevOps challenges in today’s global, open, and heterogeneous world of software development.