Daschle: Terrorism Reinsurance A Priority
By Steven Brostoff, Washington Editor
NU Online News Service, Jan. 24, 12:53 p.m. EST, Washington?Insurance industry representatives are praising Senate Majority Leader Tom Daschle, D-S.D., for identifying terrorism reinsurance as one of his legislative priorities for this year.
"Sen. Daschle's statement is a crucial development, insofar as it recognizes that there has been significant displacement in the insurance marketplace," said Ken Crerar, president of the Washington-based Council of Insurance Agents and Brokers. "Given the Majority Leader's statement, we now believe that the successful conclusion of this debate can be reached in the next two months."
Mr. Crerar was reacting to comments from Sen. Daschle quoted by Congress Daily AM in which he identified terrorism reinsurance, which the Senate failed to approve last year, as a priority.
Sen. Daschle was quoted as saying, "Efforts to solve this complex problem last year were impeded by some who sought to use this issue to push through other extraneous issues. This year, we need to work together to assess the real needs of the marketplace and provide real solutions–the sooner, the better."
Mr. Crerar said that the Council's own surveys demonstrate that the risk of terrorism have been transferred from reinsurers to primary insurers, and now much of that has been moved from insurers to major consumers. "This alone justifies a temporary federal backstop to restore normalcy," he said.
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