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April 18, 2014 Vol. 274 No. 15
continued on page 16
continued on page 22
In This Issue
Mass. Committee Passes
Several Ins.-Related Bills 5
IIABA Members Praised
for Job Creation 5
Willis Report Sees Softer
Commercial Market 5
U.S. Reps Advise Moving
“Beyond Blame” in D.C. 8
Atlantic Hurricane Season
Predicted to Be Quiet 9
Standard Answers: Putting the
“Sudden” in Sudden Water Damage 10
TrustedChoice.com Web Traffic
Up in March 11
M&A Expected to Increase This Year 12
PCI Advises on Graduate Needs 12
Executive Suite 14
WASHINGTON, D.C. — The insurance industry breathed a sigh of
relief last week as a United States Senate agreement to extend the Terrorism
Risk Insurance Act (TRIA) for another seven years.
Led by Sen. Chuck Schumer (
D-N. Y.), a bipartisan group of lawmakers
introduced legislation that would extend TRIA — which is scheduled
to expire at the end of this year —
as well as make a few changes to the
P/C Industry Relieved, But Cautious, By TRIA
Reauthorization Bill’s Introduction in U.S. Senate
Legislation Would Extend Terrorism Insurance Program for Seven Years
program. Under the agreement, insurers would have to pay 20% of the
prior year’s direct earned premium for
commercial lines that include terrorism coverage as a deductible in the
event of an attack.
The bill was cosponsored by Sen.
Mark Kirk (R-Ill.), Jack Reed (D-
R.I.), Dean Heller (R-Nev.), Chris
Murphy (D-Conn.), Mike Johanns
(R-Neb.), Mark Warner (D-Va.),
Roy Blunt (R-MO.) and Robert
Menendez (D-N.J.), will renew the
program for seven years.
TRIA was first authorized in 2002
following the terrorist attack of Sept.
11, 2001. It was reauthorized in 2005
and 2007 and is scheduled to sunset
on December 31, 2014. In addition
to the newly introduced Senate bill,
three TRIA reauthorization bills,
H.R. 508, H.R. 1945 and H.R.
2146, have been introduced in the
BOSTON — During the first few
months of every year, insurance in-
dustry observers have a lot to say
about the market conditions that
should be expected in the near future.
Doug Nelson, president of Acadia In-
surance Company, told members of
the Boston Chapter of the CPCU So-
ciety last week that it sometimes helps
to take a look at what’s behind the
predictions and how likely they are to
“All of these experts seem to come
out of the woodwork in the first
few months of the year,” said Nelson, citing various studies and reports
from brokers, researchers and consulting firms. “Everyone’s got an
Acadia Pres. Offers P/C
Industry Outlook to CPCUs
ESTANDARD NEW ENGLAND’S INSURANCE WEEKLY