Solution sought to terror risks; Risk managers see need for government involvement.(Spotlight: RIMS 2006 Trends & Developments)(Risk and Insurance Management Society Inc.)(Terrorism Risk Insurance Extension Act of 2005)

Business Insurance, May, 2006 by Gonzalez, Gloria

Byline: GLORIA GONZALEZ HONOLULU-A practical, long-term solution to handling terrorism risks must include continued federal government involvement in any type of reinsurance program, risk managers say. While the exact form of that involvement may not need to mirror the current backstop under the Terrorism Risk Insurance Extension Act of 2005, terrorism is not a risk that the private insurance market can effectively handle on its own, they say.

For most risk managers, the priority is to have a workable solution in place before the expiration of TRIEA so that they can avoid the same market uncertainty they encountered during last year's protracted debate on the renewal of the original measure, the Terrorism Risk Insurance Act of 2002. If a permanent...

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