RIMS Lobbies For Congress To Back Terrorism Reinsurance
To The Editor:
The Risk and Insurance Management Society wholeheartedly concurs with the conclusion drawn in NU's Jan. 21 editorial, "California, New York Take Big Risks on Terrorism Policies."
The absence of Congressional action to provide a federal terrorism reinsurance backstop has caused a confusing and potentially dangerous situation–specifically for insurers in New York and California, two of the four states where terrorism exclusions do not exist, as well as for policyholders everywhere who are faced with absorbing nearly all terrorist risk themselves.
The Insurance Services Office's terrorism exclusions in 46 jurisdictions, while necessary to protect the solvency of insurers, have left policyholders, including many RIMS member companies, scrambling for coverage. Assuming they are even able to find terrorism insurance, some companies are forced to endure astronomical premium increases to place even a quarter of the coverage they previously enjoyed.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
