Non-Insurer Coalition To Push Backstop

Washington

A wide range of major business groups have formed a new coalition aimed at securing passage of legislation creating a federal backstop for insurance losses caused by terrorism.

Called the Coalition to Insure Against Terrorism, the new group said that passage of terrorism insurance legislation is vital to the nations economy.

“Gaps in insurance coverage against acts of terrorism weaken our economy and pose a very real threat to our homeland security,” said Martin DePoy, vice president of government relations with the Washington-based National Association of Real Estate Investment Trusts.

“Unfortunately, the insurance industry has neither the capacity nor the willingness to underwrite comprehensive terrorism coverage at this point in time,” he said.

Some 26 associations and individual companies are members of the new coalition, including the National Association of Manufacturers, the National Association of Realtors, the National Association of Home Builders, the U.S. Chamber of Commerce, and the National Football League.

There are no insurance industry representatives.

Mr. DePoy said that the coalition is concerned that unless Congress steps in, terrorism insurance will be available only at prohibitively high rates, or not available at all.

“The economic impact of further terrorist attacks on the businesses represented by the coalition members is immeasurable,” he said. “Without insurance, it could be catastrophic.”

Mr. DePoy said the coalition will ask Congress to craft a plan that will give insurers the means to provide comprehensive coverage.

“At this critical time in the nations history,” he said, “a dysfunctional insurance system could jeopardize our economic recovery and weaken our homeland security.”

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, February 18, 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.

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Non-Insurer Coalition To Push Backstop

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