Issued
by the President’s Working Group on Financial Markets
WASHINGTON - The National
Association of Mutual Insurance Companies (NAMIC) today issued
the following statement in response to the release of the Terrorism Risk
Insurance Report of the President’s Working Group on Financial Markets.
The statement should be attributed to NAMIC Government Affairs Senior
Vice President Carl Parks.
"While private sector capacity
has increased and prices have decreased since 9/11, it is essential to
remember that TRIA and TRIEA require insurers to offer terrorism risk
coverage and insurers have been willing to continue to write such
coverage - rather than withdraw entirely from the market - because of
the federal backstop that limits their liability.
"NAMIC companies are on the
frontlines. They saw what happened after 9/11 -- insurers withdrew from
a market they couldn't predict or price and policyholders couldn't get
the coverage they needed -- and they are convinced the same things would
happen again if there is no private/public federal terrorism program.
