RIMS Backs Senate Terrorism Bill

The Risk & Insurance Management Society Inc. has informed legislators reconciling a pair of bills that it supports the Senate-backed approach to providing government-supported terrorism insurance relief over the measure passed by the House of Representatives.

In a letter, RIMS’ vice president for communications and external affairs noted that RIMS favors the Senate plan whereby the government and the insurance industry would share in the costs of a catastrophic terrorist attack. The letter added that RIMS believes the House measure, supporting a loan program for insurers, would in the end result in higher costs for policyholders.

Both bills however, according to RIMS, would permit for sufficient time to establish a federal reinsurance program or the ability to restabilize both the insurance and reinsurance market.