U.S. insurers urge Congressional action on terror insurance legislation

Nearing adjournment of the U.S. Congress session has sparked concerns among property and casualty insurers that legislation will not be passed this year allowing for the creation of a federal government-backed terrorism insurance mechanism. The National Association of Independent Insurers (NAII), which represents 715 member companies, is the latest organization to issue a call to Congress to act swiftly in finalizing legislation on a terrorism insurance program.
NAII notes that insurance markets in the U.S. for terrorism coverage remain troubled, particularly for commercial property, workers’ compensation and group life lines. "NAII strongly supports a temporary federal terrorism reinsurance program that is simple in concept and administration, with the least amount of federal regulatory intervention. Any federal program should provide for a true risk-sharing mechanism in the short run until the [insurance] industry market mechanisms can respond," says Carl Parks, senior vice president for government relations at NAII.