In a letter to the United States Senate and Chairman Paul Sarbanes, the Independent Insurance Agents & Brokers of America (IIABA) is commending the Chairman in seeking a quick resolution to the present terrorism reinsurance legislation being discussed. Below is a copy of the letter.
The Honorable Paul Sarbanes
United States Senate
Washington, DC 20510
Dear Chairman Sarbanes:
On behalf of the Independent Insurance Agents & Brokers of America (IIABA), we commend your leadership in seeking a speedy resolution of the terrorism reinsurance legislation now in conference. IIABA, representing over 300,000 independent insurance agents and brokers and their employees nationwide, requests that all members involved in the negotiations send the Administration legislation that can be signed into law as soon as possible.
Due to the lack of terrorism insurance, a recent survey (Building Owners and Managers Association International) found that twenty-seven percent of property owners and managers said they were self-insuring or “going bare” for terrorism coverage for all or part of their properties. Additionally, of the remaining seventy-three percent who were able to find coverage, eighty percent incurred higher premiums, caps on coverage, and cancellation clauses of sixty days or less.1 This hard data reflects the difficulty our agents and brokers have experienced in providing products to their consumers. This lack of affordable terrorism insurance continues to plague the economy as a whole. Financiers have restricted loans and businesses have significantly curtailed investment. No one wants to return to an insurance market like the mid 1980s when the lack of available or affordable insurance dramatically altered the business and personal activities of Americans.
It is critical to enact legislation that provides stability in the insurance marketplace and, therefore, we encourage your quick and decisive action on this issue.
Thank you for your consideration.
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