“At no point in my 13-year lobbying career have I seen a greater need for the industry to speak with one voice,” added Joel Wood, senior vice president of government affairs for the Washington-based Council of Insurance Agents and Brokers. There has been an “absolute crackup” in the marketplace for terrorism reinsurance, he added.

Although four different proposals for creating a terrorism reinsurance facility are now on the table, the widespread view was that there are more similarities than differences among them, and that a consensus would be reached.

“This is an extremely important piece of legislation; it has to pass,” said Maria Berthoud, senior vice president of federal affairs for the Alexandria, Va.-based Independent Insurance Agents of America. While there are different proposals, she said, they are the same in concept, adding that she expects the industry to reach a 100 percent consensus.

Carl Parks, senior vice president of federal affairs for the National Association of Independent Insurers in Des Plaines, Ill., noted that NAIIs proposal differs from the others in that it has a component to cover natural disaster losses. However, he said, NAII is looking forward to working with everyone in the industry to reach a consensus.

Julie Rochman, senior vice president of public affairs for the Washington-based American Insurance Association, noted that as was learned during the debate over natural disaster losses, a divided industry gives members of Congress who might not be inclined to support legislation a reason to do nothing. They can simply tell the industry to “get its own act together” first, she said.

“That should not happen this time,” she added, noting that everyone understands the need to get something done.

Ann W. Spragens, senior vice president and general counsel with the Alliance of American Insurers in Downers Grove, Ill., added that it doesnt matter that a variety of plans are on the table now, as long as there is a single proposal at the end of the process.

The industry is working under a very tight time frame. Congress is widely expected to recess for the year by the end of October.

A conference call on the different industry proposals was scheduled to take place after this edition went to press. Check NUs “Hot News” section at NationalUnderwriter.com for an update on the outcome of that discussion.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, October 8, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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