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Dear Chairman Hensarling and Ranking Member Waters:
On behalf of the American Public Transportation Association (APTA) and its more
than 1,500 member organizations, I write in support of legislation to extend the Terrorism
Risk Insurance Program. Originally created following the September 11, 2001 attacks, the
public transportation industry requires the program in order to insure against potentially large
losses due to acts of terrorism.
Public transportation agencies are technologically advanced systems that are largely
open to the public and have repeatedly been identified as high-risk terrorist targets. Despite
significant and continuing efforts to harden facilities, enhance public awareness, and increase
overall security across their systems, public transportation agencies require full insurance
coverage (both property and casualty) from terrorist acts. Since September 11, the insurance
industry has been unable to provide the necessary insurance capacity to financially protect
public and private assets such as public transportation, utilities, commercial real estate, and
similar industries and projects. The passage of Terrorism Risk Insurance Act (TRIA) enabled
public transportation agencies to once again access the marketplace and obtain affordable
coverage along with the reinsurance available through TRIA. There is no indication that the
private insurance market is any better equipped to exclusively provide terrorism insurance
now than it was when TRIA was initially enacted in 2002. To this end, we ask that the
federal government continue its role in the ongoing public-private partnership that is the
Terrorism Risk Insurance Program.
I thank the committee for its leadership on this important issue. Please feel free to
contact me or my staff should you have any questions.