Government Terror Survey: UPDATED

By Daniel Hays

NU Online News Service, March 17, 9:40 a.m. EST?The U.S. Treasury Department is urging apathetic insurers to answer a survey designed to gauge the industry's ability to provide terrorism coverage.[@@]

According to an industry trade group, only 52 of 400 selected insurers have responded thus far and the deadline has been extended for answers to be returned.

However, a treasury spokesperson, Brookly McLaughlin denied that the time for returns has been stretched out.

Ms. McLaughlin, in an e-mail, also said: "We are still accepting responses and are encouraged by the rate so far. A good response rate is important to assure full and accurate survey results. We urge insurers to fill out as much of the questionnaire as they can and return it by April 1."

Ms. McLaughlin said that in addition to mailing in surveys, participants can complete them on the Web at www.TRIAsurvey.org or over the phone by calling 888-891-6883.

According to the Property Casualty Insurers Association of America, the agency had originally asked the firms that were surveyed to have answers back by Jan. 31, 2004, while the National Council on Compensation Insurance reported that the date for returns was March 26.

Don Griffin, an assistant vice president for commercial lines with PCI's Washington office, said that last Thursday during a conference call, Treasury officials told his group only 52 of 400 insurers surveyed had returned the 53-page form.

Mr. Griffin said PCI plans to put out a bulletin urging its members to respond to the survey with as much information as they can before the deadline because "from an industry standpoint it's advantageous."

A Treasury official said last September that the survey being done by Westat of Rockville, Md., should take two hours to complete. However, according to Mr. Griffin, it can only be done in that time span "if you have the information at hand. If you don't, it may take more time. Some of it is rather data-intensive."

The Treasury Department is mandated by law to provide Congress with a report on TRIA's impact. At this point responses from insurers are voluntary, but to use the survey information, Treasury must meet the statistical reliability plan standards of the U.S. Office of Budget and Management.

Mario Ugoletti, deputy director for the Treasury Office of Financial Institutions Policy, said in September that if the information were not forthcoming, it might be obtained by requiring companies to provide premium information to the National Association of Insurance Commissioners.

Treasury, in addition to voicing concerns to PCI, has also expressed them to the American Insurance Association and others, according to a report by the NCCI.

The submitted survey data will be exempt from disclosure under the Freedom of Information Act, the Treasury said.

Mr. Griffin said that a somewhat better response to the survey has come from commercial policyholders. Some 20-to-25 percent have provided answers, he said he was told by the Treasury officials.

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Government Terror Survey: UPDATED

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