Insurance Critical To Post-Attack Recovery

During the time when our flags flew low and our country collectively mourned, we saw more unthinkable vignettes. Republicans and Democrats gathered to sing "God Bless America" on the steps of our nations Capitol. For the first time in history, the U.S. national anthem was played at Buckingham Palace during the changing of the guard.

At a Democratic fundraiser in Iowa, Al Gore was quoted as saying, "George Bush is my Commander-in-Chief." Bill Clinton and Bob Dole joined together to raise money for the relief effort.

In mourning, we put aside personal and political differences and found the higher ground.

With heavy hearts but clear vision, the insurance industrys response to the attacks was immediate.

The vision statement for the National Association of Mutual Insurance Companies is "Turning Issues Into Positive Results." After the attacks, it was hard to imagine that anything positive could result from the cowardly, unconscionable acts of terrorists. Still, as a nation and an industry, our collective shock, dismay and grief gave way to action.

On the day following the attacks, NAMIC called an emergency board meeting and made the decision to cancel its annual convention for the first time since World War II. And, in an unprecedented move, the board asked members to donate registration fees for the convention to a relief fund for the victims instead of requesting a refund.

The response from delegates to the convention, as well as from exhibitors, speakers and entertainers scheduled for the convention was humbling and overwhelming. NAMIC will donate more than $400,000 to the relief effort on behalf of its member companies.

Our industry has shown tremendous courage, unity and compassion. Companies announced that they would pay all claims related to the terrorist attacks without reference to possible "act of war" exclusions. Many companies set up dedicated claims processing units, assigned special teams and procedures, and eased documentation requirements for handling claims.

Companies relaxed rules on late premium payments and policy reinstatement. Corporate donations from the industry poured into disaster relief agencies such as The Red Cross and the Salvation Army.

In addition–as the industry did after Hurricane Andrew in 1992, the Northridge Earthquake in 1994 and the Oklahoma City bombing in 1999–the Insurance Information Institute, along with NAMIC and the other insurance industry trade associations, established a disaster response office.

The Disaster Insurance Information Office was established in New York City–additional, tangible proof of our industrys commitment to its policyholders. The DIIO estimates that 10 percent of the victims in the attacks were our colleagues in the financial services and insurance industries.

We are well aware that providing superior service, paying claims and helping rebuild will not replace the lives that were lost on Sept. 11, 2001. But it will help the country, however changed, move past this time and create a brighter future.

And if there is one message that we can send, it is to tell the terrorists that their attack on the spirit and the fiber of America was a dismal failure. From the smallest child with a flag tied to his backpack to the unselfish donations from the largest corporations in America, we have pulled together to focus our energy on helping the survivors and honoring the victims.

America will not be broken. Every day, stories of heroic acts of ordinary Americans emerge and we stand united in our mission to rebuild. And, as Gordon Stewart, president of the Insurance Information Institute, said, "Without insurance, it would be impossible to recover from this disaster. Insurers are committed to the rebuilding of New York City."

How do we celebrate the heroes? How do we pay tribute to our own colleagues who lost their lives? President George W. Bush and Mrs. Bush urged us to get back to living our lives. And in doing this, we memorialize those who have fallen and honor those who survived. We must continue to live our lives, to behave charitably, to honor the commitments made by our industry, and to do more than is expected of us.

On Oct. 7, as the military strikes began, President Bush stood before our country and pledged: "The battle is now joined on many fronts. We will not waiver; we will not tire; we will not falter; and we will not fail. Peace and freedom will prevail."

And that is the same pledge we make to those who depend on the insurance industry to rebuild foundations of lives and businesses. The insurance industry has both a fundamental responsibility and a monumental role in rebuilding our nation. Let us stay focused on the mission, build on the initiatives that have already begun, and work faithfully toward the finish.

Now more than ever, we can be proud of our industry and its response. By staying united, we will be able to work through this together and stand proud when peace, once again, prevails.

Jim Blum is president and CEO of Brotherhood Mutual Insurance Company in Ft. Wayne, Ind. He served as chairman of the National Association of Mutual Insurance Companies in 2000-2001.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, October 22, 2001. Copyright 2001 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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