Terrorism Coverage Could Be Future Problem

Insurers must begin planning now for the expiration of a federal terrorism insurance backstop program, even though there's no guarantee that reinsurance will be available if the federal backstop is allowed to expire as planned at the end of 2005. That warning was sounded by experts at the Annual Underwriting Conference, held this week in Orlando by the Alliance of American Insurers and the American Association of Insurance Services (AAIS). Even though the government is providing a partial backstop through the Terrorism Risk Insurance Act of 2002 (TRIA), the threat of another attack presents ...