Letter to the Editor: Buyers Urge Insurers To Be Reasonable On Terror Cover

Buyers Urge Insurers To Be Reasonable On Terror Cover

To The Editor:

In response to the lead article on page 5 of your Dec. 2, 2002, edition, “Insurers Scrambling to Comply With New Terrorism Insurance Law,” the Risk and Insurance Management Society acknowledges that pricing terrorism losses continues to be extremely difficult. However, RIMS strongly believes that with the passage of the Terrorism Risk Insurance Act, premiums must become more reasonable, capacity should expand, and limits should be available to cover buyers’ needs.

RIMS member companies–nearly 4,000 commercial policyholders–expect implementation of the Act on a reasonably prudent basis. This critical legislation will go a long way to restoring our members’ faith in the ability of the insurance and reinsurance markets to provide effective safeguards for both policyholders and insurers should future catastrophic terrorist events occur.