Industry, Legislators Ponder Formation of Terrorist Risk Pool

Wednesday, October 10th, 2001 Catastrophe Legislation & Regulation

The idea of creating a federally backed insurance pool to guard against future acts of terrorism is gathering steam on Capitol Hill. The Wall Street Journal reported on Oct. 9 that top-level insurance executives and legislators have been in meetings to discuss the terms of the legislation. The new system would be loosely based on a model pool formed in Britain after a series of major bombings in the 1990s. Basically the plan calls for U.S. insurers to pool billions of dollars which they could then draw from for the reinsurance of future terrorism-risk policies provided to U.S. businesses, excluding acts of war and natural disasters. Beyond the resources of the pool, the federal government would chip in funds.

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http://www.insurancejournal.com/html/ijweb/breakingnews/national/na1001/na1010011.htm

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