The insurance industry has agreed that a reinsurance facility providing coverage for terrorism risks should be state-chartered rather than federally-chartered, an industry representative said.
Julie Rochman, senior vice president of public affairs for the Washington-based American Insurance Association, said that the industry is making "good progress" in reaching a consensus on creation of a reinsurance pool, although some details still need to be worked out.
While the consensus approach will likely look a lot like what has already been discussed--a voluntary pool that is privately-owned and administered, and that pays the federal government a premium for retrocessional coverage--the one big change is that the facility be state-chartered, possibly in Delaware, Ms. Rochman said.
