Insurers Need To Attack Credibility Problem Next

Insurers Need To AttackCredibility Problem Next

Once all the activity surrounding terrorism reinsurance legislation subsides, the insurance industry might do well to focus on another issue; namely, whether it has a credibility problem both on Capitol Hill and with the Bush administration.

The consensus proposal developed by the insurance industry to create a private mutual reinsurance pool backed by the U.S. Treasury as the “reinsurer of last resort” was dismissed out-of-hand, and on a bipartisan basis, both at the Treasury Department and by the relevant Congressional committees.