AAI Challenges Consumer Group on Fed Backstop

The Alliance of American Insurers said that a recent letter on terrorism insurance sent by the Consumer Federation of America (CFA) to Senate Majority Leader Tom Daschle cited incomplete statistics and was misleading in its conclusions. "The CFA has inaccurately characterized the insurance marketplace as rebounding from the Sept. 11 attack," said Alliance President Rodger S. Lawson, Ph.D. "In fact, the uncertainty of the situation has created shortages and pricing issues for terrorism insurance. A federal backstop is necessary to return stability to the market and protect our economy. ...