Industry Hopeful Insurance Solution Coming

WASHINGTON, DC-Real estate and insurance industry executives have proposed various solutions to the problem of insuring against terrorism at a joint hearing of federal subcommittees.

Real Estate Roundtable senior vice president Clifton E. Rodgers Jr. tells GlobeSt.com that it’s clear that all attending the sessions understood the urgency of developing a solution. The testimony was taken last week by subcommittees on capital markets, insurance and government-sponsored enterprises and oversight and investigations of the House committee on financial services.”I think everyone is in general agreement that something has to be in place by year end 2007,” Rodgers says.

Roundtable’s answer to this difficult issue is to create a layer of private capital between primary insurers and the federal government so the marketplace can maintain continuity. “Policy holders can get the coverage they need. At the same time, the role of the federal government in the terrorism insurance market will be minimized,” Rodgers explains.