Fed Role In Terror Re Debated.(Terrorist attacks' impact on reinsurance industry)(Government Activity)(Brief Article)(Statistical Data Included)

National Underwriter Property & Casualty-Risk & Benefits Management, October, 2001 by Brostoff, Steven

Congress took the first tentative steps last week towards setting up a "reinsurer of last resort" for terrorist attacks. At a House Financial Services Committee hearing, the concept of a federal reinsurance pool was promoted by insurance industry representatives as a logical next step after the industry resolves losses arising from the Sept.

11 tragedy. Dean O'Hare, chairman of Warren, N.J.-based Chubb, said that federal legislation is needed "quickly." Already, he said it is impossible for a commercial insurer like Chubb to acquire reinsurance that does not have a terrorism exclusion. If reinsurers exclude terrorism, he said, primary companies will not be able to issue policies that cover terrorism. Ronald Ferguson, chairman of Stamford, Conn.-based...

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