Search
 

The Last Word: Millions-wise, billions-foolish

The Last Word addresses the terrorism risk insurance program.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The Obama administration’s 2010 fiscal budget calls for changes in the terrorism risk insurance program that would save an estimated $644 million by shifting additional costs to the insurance industry. While NAMIC shares the administration’s goal of reducing the deficit after the immediate financial crisis abates, we submit that making these changes would be like the old saying, “penny-wise, pound-foolish.” Or, in today’s world, “millions-wise, billions-foolish.” Congress first adopted the Terrorism Risk Insurance Act in 2002, in the aftermath of the tragic events of Sept. 11, and subsequently amended and extended the program in 2005 and 2007. Each time, Congress held exhaustive hearings examining developments in the private insurance market and then adjusting the levels of private sector retention of terrorism losses. The goal has been to maximize private sector coverage and minimize the federal government’s exposure.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.