Insurers are fully meeting their promises to policyholders in the wake of the Sept. 11 terrorist attack on the World Trade Center; however, a federal backstop is needed to provide protection against future terrorist attacks, according to testimony by the American Insurance Association (AIA) before the New York State Assembly‘s Insurance Committee.
"Although the property/casualty insurance industry can deal with the incredible losses from September 11, we are very concerned about what will happen if there are additional, large-scale terrorist attacks in the future. It is critical that everyone recognize that we are dealing with a peril which is not quantifiable, and therefore not insurable within the finite resources of the private insurance industry," said James Harrington, AIA vice president, northeast region.
