The latter part of this week has been dominated by muted industry reaction to the new U.S. House of Representatives draft discussion bill on TRIA renewal [Terrorism Risk Insurance Act].
The Washington insurance policy sector is happily divided between those who might be in town to see the bill’s introduction in the House Financial Services Committee Monday or Tuesday, and a possible mark up later next week, as I wrote for Carrier Journal and Insurance Journal today, here, and those going to Quebec City for the International Association of Insurance Supervisors (IAIS) global seminar starting June 16.
The IAIS seminar will be focusing on developments in capital standards, especially those proposed for ComFrame,enhancing cooperation through supervisory colleges and memorandums of understanding (one of Connecticut Insurance Commissioner and IAIS Executive Committee member Tom Leonardi’s top areas of activity and expertise,) market conduct and standards implementation. It should be the inaugural IAIS meeting for new Federal Reserve executive insurance official Tom Sullivan, who started the job June 9th.
The full use of restraint by the insurance industry on the TRIA House draft legislation, despite the higher trigger amount ($500 million) for federal coverage and the large co-pay, has some people tense over on the U.S. Senate side, where a bill that sailed out of the Senate Banking Committee keeps the $100 million trigger. This “traditional” trigger amount means a lot to small companies–and even to large ones who want a many carriers to stay in the game as possible, but most want the House legislation to roll ahead and get its footing before fiddling with its contents.
Washington Insurance Rider is parked in Washington for the time being, so will have to make do with covering any TRIA action within the sweltering Capital City where temperatures are forecast for the low 90s (Fahrenheit! for the IAIS Secretary’s benefit–Yoshi Kawai used a Celsius -Fahrenheit analogy at a recent NAIC international forum in Washington to advocate for international capital standards for all large global insurers–or ones just thinking about it!)