|By PR Newswire||
|April 10, 2014 03:28 PM EDT||
WASHINGTON, April 10, 2014 /PRNewswire-USNewswire/ -- The Real Estate Roundtable today welcomed the findings of a RAND Corp. report that the nation's Terrorism Risk Insurance Act (TRIA) helps protect U.S. taxpayers — particularly for catastrophic events on the scale of 9/11 — and that the program's expiration at year-end would mean bigger federal outlays in the event of future terrorist attacks. The Roundtable is also encouraged by the introduction of a bipartisan Senate bill today that would extend TRIA for seven years, while making key reforms to further reduce taxpayer exposure.
"As the RAND study demonstrates, keeping TRIA in place is considerably cheaper for the federal government than allowing it to expire," said Roundtable President and CEO Jeffrey D. DeBoer, noting that there have been "zero" outlays since the program's original enactment in Nov. 2002. "Unless the law is reauthorized — and the sooner the better, given the impacts already being felt by policyholders across the country — terrorism risk will again be uninsurable, the nation will face unnecessary economic headwinds, and jobs will be lost," he added.
The RAND study, titled "The Impact of Eliminating the Terrorism Risk Insurance Program on Federal Spending," concludes that, for terrorist attacks with losses up to about $40 billion, taxpayers end up paying less with TRIA in place than if the law is allowed to sunset. Under the program, government spending is not triggered until losses exceed $30 billion and until significant insurer deductibles are met (20% of prior-year direct earned premiums for covered commercial lines). Even then, the government pays 85 percent, with mandatory recoupment from policyholders up to $27.5 billion and additional recoupment at the Treasury Secretary's discretion. (For this reason, the Congressional Budget Office has "scored" the current program at zero.)
The TRIA bill unveiled by Senator Charles Schumer (D-NY) — with Senators Dean Heller (R-NV), Mark Kirk (R-IL), Mike Johanns (R-NE), Jack Reed (D-RI) and Christopher Murphy (D-CT) as co-sponsors — would increase insurer co-pays from 15% to 20% for losses above the $30 billion threshold, while increasing the recoupment amount by $10 billion, to $37.5 billion. Senate Banking Chairman Tim Johnson (D-SD) and Ranking Republican Michael Crapo (R-ID) reportedly participated in the bipartisan talks leading up to today's announcement, and may sign onto the bill as well.
Without TRIA, the RAND study suggested, terrorism insurance is expected to become far less available (as it did after 9/11) — prompting more businesses to go uninsured, and, thus, increasing the likelihood that the federal government would need to step in with billions of dollars in emergency disaster aid. According to RAND, an attack equivalent to 9/11 would now cause insured losses of about $33 billion.
In The Roundtable's view, TRIA and its subsequent extensions protect taxpayers by enabling economic activity to proceed in the face of ongoing terrorist threats; allowing the economy to recover more quickly in the event of an actual attack; and reducing federal spending in the event of an attack comparable to 9/11.
"Terrorism is a unique and ever changing risk that is virtually impossible to model," said DeBoer. "TRIA helps markets work in the face of this unpredictability, providing a pool of private capital that absorbs first losses — before one dime of taxpayer money is ever spent. TRIA is also critical to commercial real estate's ability to obtain financing — and, thus, its continued recovery from recession — since lenders will not make loans without terrorism risk coverage on the collateral."
"For the sake of our economy — and to avert a job-killing credit crunch in commercial real estate — Congress must reauthorize TRIA and do so quickly. Time is of the essence," DeBoer concluded.
The study (www.rand.org) was prepared by the RAND Center for Catastrophic Risk Management and Compensation, and is the second of three RAND policy briefs being issued on TRIA this year.
SOURCE Real Estate Roundtable
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Nov. 27, 2014 06:00 PM EST Reads: 1,652
15th Cloud Expo, which took place Nov. 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, expanded the conference content of @ThingsExpo, Big Data Expo, and DevOps Summit to include two developer events. IBM held a Bluemix Developer Playground on November 5 and ElasticBox held a Hackathon on November 6. Both events took place on the expo floor. The Bluemix Developer Playground, for developers of all levels, highlighted the ease of use of Bluemix, its services and functionalit...
Nov. 27, 2014 06:00 PM EST Reads: 1,036
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...
Nov. 27, 2014 06:00 PM EST Reads: 912
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Nov. 27, 2014 05:00 PM EST Reads: 1,225
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
Nov. 27, 2014 04:45 PM EST Reads: 1,069
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
Nov. 27, 2014 04:45 PM EST Reads: 1,022
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
Nov. 27, 2014 04:30 PM EST Reads: 1,069
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
Nov. 27, 2014 04:00 PM EST Reads: 1,162
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
Nov. 27, 2014 04:00 PM EST Reads: 1,556
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Nov. 27, 2014 03:00 PM EST Reads: 1,187
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Nov. 27, 2014 03:00 PM EST Reads: 770
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
Nov. 27, 2014 03:00 PM EST Reads: 1,399
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Nov. 27, 2014 01:00 PM EST Reads: 1,596
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Nov. 27, 2014 11:00 AM EST Reads: 1,203
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
Nov. 27, 2014 10:00 AM EST Reads: 1,164