NU Online News Service, Feb. 28, 2:43 p.m. – Insurance commissioners plan to consider terrorism exclusions for group life and health contracts this week.
Montana Commissioner John Morrison, who is chairing the group conducting the review for the National Association of Insurance Commissioners, Kansas City, Mo., says the discussion will center on solutions available to the industry, the lack of availability of catastrophe reinsurance coverage, and possible solvency issues.
The price of catastrophic terrorism event reinsurance, or cat cover, has increased anywhere from 300% to 1,400% since Sept. 11, 2001, according to interviews.
"That is, if you can get it," says Donna Mundy, senior vice president-government relations with UnumProvident Corp., Portland, Maine.
The number of reinsurers that have made it available to UnumProvident has been whittled down from a field of 12 to a lone reinsurer, she adds.
Employers are already being hit with large health insurance increases and may not buy other insurance benefit if the cost is too high, she says.
Fortis received one cat quote that was pulled back, and another offer for 10% of the cat cover needed, says Ed Harper, a senior vice president in the company's Washington office.
