Non-Insurer Coalition To Push Backstop

Washington

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

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

“Gaps in insurance coverage against acts of terrorism weaken oureconomy and pose a very real threat to our homeland security,” saidMartin DePoy, vice president of government relations with theWashington-based National Association of Real Estate InvestmentTrusts.

“Unfortunately, the insurance industry has neither the capacitynor the willingness to underwrite comprehensive terrorism coverageat this point in time,” he said.

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

There are no insurance industry representatives.

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

“The economic impact of further terrorist attacks on thebusinesses 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 planthat will give insurers the means to provide comprehensivecoverage.

“At this critical time in the nations history,” he said, “adysfunctional insurance system could jeopardize our economicrecovery 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 serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.

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