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NEW YORK, June 21, 2007 - The ̽»¨¾«Ñ¡ Information Institute (I.I.I.) has experts available to speak with reporters covering the Thursday, June 21 U.S. House of Representatives' public hearing on House Resolution 2761-the Terrorism Risk ̽»¨¾«Ñ¡ Revision and Extension Act of 2007 (TRIREA).

"The threat of terrorist attack is a source of tremendous uncertainty for the United States economy, with negative consequences for both business interests and employment," said Robert Hartwig, president and chief economist of the I.I.I. "Implementation of a long-term terrorism risk insurance program is an essential component of the nation's effort to protect the financial homeland. The proposed 10-year extension will protect millions of businesses and their workers. It also addresses the potential ambiguity of domestic versus international terrorism acts."

Hartwig added that the program's benefits will be felt immediately and will accrue to virtually every segment of the economy. "Businesses in cities and towns, large and small, from coast to coast will now be able to purchase terrorism risk insurance more readily, secure in the knowledge that the protection will remain available for many years to come," he said. "It should be particularly beneficial to the construction, commercial real estate, manufacturing, utility and transportation industries. Governments that own and operate critical infrastructure such as airports, ports and bridges will also benefit."

But Dr. Hartwig expressed concern over the inclusion of a provision that would compel insurers to cover nuclear, biological, chemical and radiological (NBCR) risks. "NBCR risks pose a unique threat which historically has not been covered by standard property/casualty insurance policies. Insurers have little to no experience insuring against these risks, the magnitude of which can easily exceed the claims-paying resources of private insurers, even with TRIREA in place," he warned. "The successful detonation of a nuclear device in Manhattan, for example, could result in losses in excess of $750 billion. A loss of this magnitude is nearly five times the claims paying capacity of all property/casualty insurers for TRIREA eligible lines of coverage." Dr. Hartwig noted that total insured losses from the terrorist attack of 9/11 are estimated at $35.9 billion in 2006 dollars (see chart below). "With many realistic attack scenarios producing losses several times that of September 11, it is essential that a long term terrorism risk insurance program be enacted," he said.

Interviews can be arranged by contacting Michael Barry, I.I.I.'s director of media relations at 212-346-5542 or via email at michaelb@iii.org. The I.I.I. is prepared to discuss TRIREA's economic repercussions, including provisions such as:

• Expanding TRIA's "make available" requirement to include nuclear, biological, chemical and radiological (NBCR) coverage;
• Changing TRIA's definition of terrorism to include acts of domestic terrorism;
• Setting the program trigger at $50 million;
• Adding group life insurance to the lines of insurance for which terrorism coverage must be made available.
• Potential economic consequences if the terrorism risk insurance program is allowed to lapse.

The U.S. House's subcommittee on Capital Markets, ̽»¨¾«Ñ¡ and Government-Sponsored Enterprises has scheduled a hearing to discuss H.R. 2761 today at 10 a.m. It will be held at 2128 Rayburn House Office Building, Washington, D.C.

For more on terrorism risk and insurance, go to the I.I.I.'s Web site at: /media/hottopics/insurance/terrorism/ .

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.