Hunter%3A Keep Group Life Out Of TRIA

Hunter and a colleague, Travis Plunkett, CFA's legislative director, today sent letters repeating their opposition to TRIA extension to Senate Majority Leader William Frist, R-Tenn., and Senate Minority Leader Harry Reid, D-Nev., as well as to the top Republican and the top Democrat on the Senate Banking, Housing and Urban Affairs Committee.

Justifying terrorism insurance subsidies is impossible at a time when insurance profits are skyrocketing, commercial insurance rates are falling and federal budget deficits are growing, Hunter and Plunkett write.

"Do not add group life coverage to TRIA," Hunter and Plunkett add. "Despite the Department of Treasury's recommendation to reduce TRIA reimbursed lines, group life insurers are lobbying mightily for an expansion. There is no meaningful evidence that justifies expanding TRIA to cover group life insurance."

Prices in the group life market are low and competition is strong, and group life insurers are not making enough use of private mechanisms for spreading risk, Hunter and Plunkett write.