The letter was sent to the Treasury Department, which is leading the President’s Working Group on Financial Markets, before the Department sends a report it is preparing to Congress.
The letter consisted of a request for an analysis of “the difficulty evaluating terrorism risk; nuclear, chemical, biological and radiological risk issues; the efforts being made to increase the take-up rate for coverage and decrease the governments exposure; and impediments to a free market response.
The senior vice president of government relations for the Independent Insurance Agents and Brokers of America was quoted as saying “This letter accurately assesses the state of the marketplace as it relates today to the thorny issue of terrorism risk insurance. It is virtually impossible to assess when or where an attack may come, and how much damage it will cause, and this makes it extremely difficult for the insurance marketplace to adequately provide coverage for such an event.”
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