STATEMENT
by Kathryn S. Wylde, President and CEO
PARTNERSHIP FOR NEW YORK CITY

New York, New York
October 3, 2006

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Statement by the Partnership for New York City President and CEO Kathryn S. Wylde on President's Working Group Analysis of Terrorism Insurance

“The New York City business community applauds the President’s Working Group on Financial Markets for its detailed and timely analysis of the insurance demands that would result from a large-scale terrorist act.

“The report underscores the crucial need to enact the Terrorism Risk Insurance Extension Act of 2005 (TRIEA) well before its expiration date in December 2007. Without the federal insurance backstop provided by TRIEA, the private insurance market would not be able to absorb the costs associated with a large-scale terrorist incident. Furthermore, the report highlights the long-term uncertainty in the viability of a private market in this area because of insurers’ difficulty in assessing the risk of a terrorist attack, as well as their reluctance to provide coverage for chemical, nuclear, biological or radiological (CNBR) attacks.

“It is important over the next 14 months to work not only to enact TRIEA, but to also address CNBR risks. Without TRIEA, many large construction projects would have difficulty finding terrorism insurance, which could affect their ability to obtain financing.   It is critical   to businesses in Manhattan and other urban centers to have access to coverage in order to finance development and stimulate economic growth. In addition, New York City alone has half of the insured risk in the country, making TRIEA that much more important to the future of our $460 billion economy.

“We call on Washington to work with the private sector to develop a long-term solution  for this unprecedented insurance  problem and to maintain confidence in these markets. This report is an important first step toward that goal.”

The Partnership for New York City (www.pfnyc.org) is a network of business leaders dedicated to enhancing the economy of the five boroughs of New York City and maintaining the city’s position as the global center of commerce, culture and innovation.