Letters (March 01, 2002)

Dear Editor,

I have just completed reading the December issue of Canadian Underwriter and enjoyed reading your coverage on the hard market and the issue of terrorism exclusions. The Insurance Bureau of Canada, the press and the regulator continue to position this issue as a problem for insurers. Indeed, Brian Reeve, in his article states: “This has created great uncertainty for insurance companies”.

I think it is important to remember that the party most impacted by terrorism exclusions is the insurance-purchasing community. Potentially catastrophic exposures such as this could threaten the viability of the strongest of Canadian companies, not just the insurance industry. The federal government would be much more likely to support a proposal which focussed on the broad economic and social factors relating to the inability of individuals and businesses to purchase coverage, than one which appears to be a backstop for the industry.

I believe that the interests of all stakeholders in this matter should be emphasized, not just the difficulties facing the property/casualty insurance industry.

Susan Meltzer

Assistant vice president, insurance & risk management

Sun Life Financial