GAO Examining Terror Re Market
The U.S. General Accounting Office is conducting a study of the terrorism reinsurance market, the National Underwriter has learned.
Industry sources said they have been contacted by the Chicago office of GAO, which is seeking information on the impact of the absence of terrorism reinsurance coverage in preparation for a House Financial Services Committee hearing, expected to take place shortly after Congress reconvenes on Jan. 23.
The study was reportedly requested by the Financial Services Committee.
The GAO study comes in the wake of the failure of the U.S. Senate to pass legislation creating a federal backup mechanism for the terrorism reinsurance market prior to Jan. 1, 2002 renewals.
Sources said that the industry groups already contacted by GAO include the American Insurance Association, the Reinsurance Association of America, and the Council of Insurance Agents and Brokers, all based in Washington, as well as the Insurance Services Office Inc. in Jersey City, N.J.
Reportedly, GAO is seeking any studies or analyses the industry might have done on the state of the terrorism reinsurance market following the Sept. 11 terrorist attacks. In addition, GAO is asking for any anecdotal information on efforts to obtain terrorism reinsurance coverage, sources said.
GAO reportedly is asking that the information be provided by Jan. 15.
The National Underwriter contacted the House Financial Services Committee for more details on the committees request, but had not received a response before this story was filed.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 7, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.