What does the SUPERBOWL have to do with Commercial Insurance?
Well, I heard one yesterday that kind of beats all: Congress taking a “harsh position” that could result in the Arizona Super Bowl being cancelled! Knowing it is one of those events that turns into a literal, although temporary, “economic boost” it is difficult for me to get my head around the possibility the answer could ever be affirmative!
I hurried off to check on Pro Football Talk and the NFL seems to be assured the Super Bowl will be played as planned. From what I can ascertain, the issue goes back to the Terrorism Risk Insurance Act (TRIA) that was signed way back in 2002.
Terrorism Risk Insurance Act
Apparently, this law was designed to provide support to insurance companies who cover the costs of terrorist attacks as a risk-sharing program between those companies and the federal government. The U.S. is to assume a portion of insured losses should they exceed $27.5 billion. The “rumor mill” took on a life of its own recently when someone noticed the TIRA expires December 31, 2014.
The long and short of it… without the extra federal backing, the insurance companies would be forced to cover all claims resulting in a terrorist attack. Up in arms about the impending doom of this possibility, the word on the street became, “We may opt to cancel any business we feel would have a higher than normal terrorist risk, such as the Super Bowl!
Further reading, and I found there is no guarantee of what will transpire: nothing to validate insurance companies will take this position, and two bills now in Congress that could temporarily extend the Bill to see how things work out, or extend the TRIA for another limited time frame. Essentially… myriad solutions – one of which is just that the NFL can elect to play the game – terrorist insured or not! What is YOUR take on this situation?
Will I see YOU at the game in Glendale February 1st, 2015?
Making MORE happen for my insurance clients…