WASHINGTON, March 6, 2014 /PRNewswire-USNewswire/ -- Real Estate Roundtable President and Chief Executive Officer Jeffrey D. DeBoer today commented on the new RAND study, National Security Perspectives on Terrorism Risk Insurance in the United States:
"The RAND study issued today clearly shows the enormous value of the Terrorism Risk Insurance Act (TRIA) to our national security, economic health and the real estate industry. The study also points out that allowing TRIA to expire - as it is set to do at the end of this year - would clearly make our country less resilient in the event of an attack.
"The extension of TRIA should not wait until the end of the year. It works. It has virtually no ongoing cost to taxpayers and the delay in acting is already slowing transactions and impending economic growth.
"Terrorism remains a dire and unpredictable threat, and private insurance markets alone cannot provide the coverage our economy needs. With the federal TRIA backstop, private insurance providers are able to offer terrorism insurance, which is often required for businesses to continue operating.
"TRIA has been an incredibly effective tool for bolstering the commercial real estate sector since 9-11 and is an integral part of our nation's comprehensive economic security strategy.
"TRIA does not stop terrorist attacks, but it does undermine the goals of terrorists who seek to weaken or destroy our economy. TRIA allows our economy to move forward in the face of terrorist threats and enables our economy to recover more quickly in the event of an actual terrorist attack.
"We encourage policy makers on Capitol Hill to review this study closely and move legislation to renew TRIA as soon as possible. This can be a real economic accomplishment for this Congress - offering a fiscally responsible tool that protects the taxpayer and creates market stability in this key sector of our economy."
The study, National Security Perspectives on Terrorism Risk Insurance in the United States, is available at http://www.rand.org/pubs/research_reports/RR573.html
The Real Estate Roundtable brings together leaders of the nation's publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy. Collectively, Roundtable members' portfolios contain over 12 billion square feet of office, retail and industrial properties valued at more than $1 trillion; over 1.5 million apartment units; and in excess of 2.5 million hotel rooms. Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.
SOURCE Real Estate Roundtable