GAO Studies Terror Re Market

The U.S. General Accounting Office is conducting a study of the terrorism reinsurance market, the National Underwriter has learned. Industry sources said they have been contacted by the Chicago office of GAO, which is seeking information on the impact of the absence of terrorism reinsurance coverage in preparation for a House Financial Services Committee hearing, which is expected to take place shortly after Congress reconvenes on Jan. 23. The study was reportedly requested by the Financial Services Committee. The GAO study comes in the wake of the failure of the U.S. Senate to pass legislation creating a federal backup mechanism for the terrorism reinsurance market prior to Jan. 1, 2002, renewals.