RAND Center for Catastrophic Risk Management and Compensation Conference

The Future of the Terrorism Risk Insurance Act: Expiration, Reauthorization, Modification

Registration for this event has closed.

Program Details

Since the Terrorism Risk Insurance Act (TRIA) was last reauthorized in 2007, terrorism insurance has remained widely available and the price has fallen. However, challenges remain from both a social and an insurance point of view. An estimated 40 percent of policyholders still do not purchase terrorism coverage and private insurers and reinsurers continue to have little appetite for terrorism risk. What is more, the program is set to expire on December 31, 2014, and it is unclear whether the improvements in the market that have been observed since TRIA was first passed in 2002 will be sustained without TRIA.

To inform the debate on whether TRIA should be continued or allowed to expire, RAND produced policy briefs on three topics that are, or should be, of central concern to policymakers. The three policy briefs are:

• The National Security Perspectives on Terrorism Risk Insurance in the United States
• The Impact on Federal Spending of Allowing the Terrorism Risk Insurance Act to Expire
• The Impact on Workers' Compensation Insurance Markets of Allowing the Terrorism Risk Insurance Act to Expire

RAND is convening a conference to present its findings, and to address additional facets of this complex issue, including the pros and cons of proposed TRIA modifications. This conference brings together stakeholders to not only discuss the varying implications of TRIA’s expiration, modification, and extension, but also to frame how it is debated in the halls of Congress and across the country.

Pending approval for four hours of CLE credit.

Agenda

(All times listed in Eastern. Agenda is subject to change.)

11:15 a.m.	Registration
11:30 a.m.	Introduction and Welcoming Remarks Lloyd Dixon, Director, RAND Center for Catastrophic Risk Management and Compensation
11:45 a.m.	RAND Research: Potential Implications of TRIA’s Sunset for National Security, Federal Spending, and Workers Compensation Insurance Markets Michael Dworsky, Associate Economist, RAND Corporation Tom LaTourrette, Senior Physical Scientist, RAND Corporation Henry Willis, Director, RAND Homeland Security and Defense Center
1:00 p.m.	Lunch with Keynote Speaker Brian Michael Jenkins, terrorism expert and special advisor to the president of the RAND Corporation
2:15 p.m.	Modifications to TRIA: What are the Pros and Cons? Modifications proposed in the House outline and Senate version of the TRIA reauthorization bill will be discussed. How will various modifications affect the price, availability, and take-up rate for terrorism insurance? How will reinsurance markets respond to changes that scale back the program? Moderator: Lloyd Dixon, RAND Corporation Panelists: Thomas M. Glassic, Vice President, Policy and Government Relations, Property Casualty Insurers Association of America Laura Haines, Vice President, Federal Affairs, The Hartford Jason Jaeger, Head Underwriter for Treaty Property, Swiss Re Erwann Michel-Kerjan, Executive Director, Wharton Risk Management and Decision Processes Center Pete Thomas, Chief Risk Officer, Willis Re
3:30 p.m.	Refreshment Break
3:45 p.m.	What is the Endgame for TRIA? TRIA has been reauthorized twice, and a third reauthorization in 2014 appears likely. How will TRIA policy play out? Should we continue to have periodic reauthorization debates or should we be moving either to make the program permanent or to eliminate it? Moderator: Tom LaTourrette, RAND Corporation Panelists: Angela A'Zary, Vice President – Corporate Risk, Renaissance Re Emil Metropoulos, Senior Vice President, Guy Carpenter & Co. LLC Tim Pawlenty, President and Chief Executive Officer, Financial Services Roundtable W. Edward Walter, President & CEO, Host Hotels & Resorts, Inc. J. Stephen Zielezienski, Senior Vice President and General Counsel, American Insurance Association
5:00 p.m.	Closing Remarks Kenneth Feinberg, Advisory Board Chairman, RAND Center for Catastrophic Risk Management and Compensation
5:15 p.m.	Adjourn
5:30 p.m.	Reception

About the Center for Catastrophic Risk Management and Compensation

The RAND Center for Catastrophic Risk Management and Compensation, or CCRMC, seeks to identify and promote laws, programs, and institutions that reduce the adverse social and economic effects of natural and manmade catastrophes by

• Improving incentives to reduce future losses
• Providing just compensation to those suffering losses while appropriately allocating liability to responsible parties
• Helping affected individuals, businesses, and communities to recover quickly
• Avoiding unnecessary legal, administrative, and other transaction costs

For more information about research conducted by the Center for Catastrophic Risk Management and Compensation, please visit www.rand.org/jie/centers/catastrophic-risk-management.

About RAND

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND focuses on the issues that matter most such as health, education, national security, international affairs, law and business, the environment, and more. With a research staff consisting of some of the world's preeminent minds, RAND has been expanding the boundaries of human knowledge for more than 60 years. Visit us online at www.rand.org.