Posted On: March 18, 2005, 4:07 pm CST

Posted By: Cindy Thun Figueiredo

I work for an insurance company, and naturally, as a for-profit enterprise, insurance companies want the federal guarantee to continue as is. But I don't believe that's "fair". I favor a reinurance fee, payable to whoever would handle TRIA. This fee would be no different from the reinsurance fees paid to "regular" insurers. Every insurance company would be in the same boat, all would have to pay the fee, and the fees could go into a fund to help offset a future loss. A catastrophe would still affect the reinsurer (the federal government), who'd have to pay out big money, but I think there's ample reason why a service to commercial enterprises should cost those enterprises a fee as in the normal course of business. It would be naive to think that adding a new risk, or a newly recognized risk, to a policy would not increase prices. The fee would be part of that increase, which would also be the normal course of business.