July 12, 2005

Snow testifying on terrorism risk insurance

WASHINGTON (Reuters) - U.S. Treasury Secretary John Snow
will speak to Congress this week about the Bush
administration's recommendation against renewing government
guarantees to cover high-priced terrorism insurance.

Snow is due to testify before the House Financial Services
Committee on Wednesday at 2 p.m. and before the Senate Banking
Committee on Thursday at 10 a.m., the panels said.

The Treasury said in a report last month that extending the
Terrorism Risk Insurance Act, or TRIA, in its current form
would hinder development of the insurance market by crowding
out innovation.

The program served its purpose after the Sept. 11, 2001,
attacks, Treasury said. But the economy is stronger now, and
the Bush administration would only support extending TRIA
beyond its Dec. 31 expiration, it said, if changes were made to
the law to reduce taxpayers' potential liability.