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# Insurers, Reinsurers Differ on Government Terrorism Timing
- URL: https://www.riskmarketnews.com/insurers-reinsurers-differ-on-government-terrorism-timing/
- Published: 2015-03-17T14:59:47.000Z
- Updated: 2015-03-17T15:01:21.000Z
- Author: Chris Westfall
- Tags: insurance, Markets, terrorism, tria

The U.S. government should make a determination whether a loss event is an “act of terrorism” in either days or months, depending which sector of the insurance and reinsurance industry you ask.

In comment letters collected to the **U.S. Department of Treasury**’s **Federal Insurance Office** (FIO) in regards to implementation of the **Terrorism Risk Insurance Program Reauthorization Act of 2015** (TRIA), industry participants either disagreed wildly about the timing of terrorism determination or left extremely vague answers.

Treasury released a[ public comment notice last month](http://f67.a75.myftpupload.com/u-s-focuses-timing-terrorism-insurance-call/?ref=riskmarketnews.com) as part the requirements of the TRIA renewal. The comments will be incorporated into a report and ultimately used as part of final rules for for a revamped terrorism act “certification process.”

On the side of certainty, both the group of insurance users and reinsurers **Lloyds of London** encouraged federal government to act quickly.

“We suggest that Treasury promulgate a certification rule that requires the Secretary to make a preliminary certification decision within a brief but defined number of days after a potential act of terrorism has occurred indicating whether or not an act is expected to be a certified act of terrorism,” said a letter from the **Coalition to Insure Against Terrorism**, an amalgamation of insurance users such as real estate companies, airlines and financial services in their response. “After having made a preliminary determination or having received a request from a policyholder or insurer, the Secretary should then have a set number of days to announce a final determination, beginning from the date of the event or the receipt of the request.”

London-based Lloyd’s agreed with the request for a quick determination, adding that it would “ help to signal to insureds on which policies they are likely to be able to claim.”

“The process could be phased, with a preliminary “no” or “likely yes” being required within a certain number of days, with a further period allowed for final determination,” Lloyds’ Chief Risk Officer and general counsel **Sean McGovern** said in their letter. “There should also be some reference to the impact this determination process would have on various claims-handling obligations (and time lines) that insurers face under various State laws. “

ISO’s Director of Government Relations **George Ortiz** said that “ there is no one quick simple accurate answer to the question of timeframe,” however, ISO’s Property Claims Service typically takes “2-3 weeks” to provide the industry with catastrophe losses estimates. Ortiz add that “it would be possible to make a determination with a good degree of confidence within a relatively short period of time shortly thereafter.”

The Risk Insurance Management Society and American Academy of Actuaries allowed for more time in their suggestions.

RIMS suggested a 60-90 day deadline from the date of an event for a formal decision on certification, while the AAA said a “reasonable” timeline would be 30 days.