Life Insurers See Little Change In The Way They Use Reinsurance
In the aftermath of the Sept. 11 terrorist attacks on the World Trade Center, life insurance companies say the incident will not have much of an impact on their existing reinsurance programs.
There are no planned changes to current underwriting and reinsurance arrangements, says Bob Picarello, general counsel with Lincoln Financial Group in Hartford, Conn.
The reason, he adds, is that there is limited use of the war exclusion clause in some contracts.
Lincoln uses a reinsurance pool that counts seven reinsurers among its participants as well as individual arrangements for its life insurance products, Picarello says.
Met Life in New York “uses very little reinsurance” for its life insurance policies and currently does not anticipate reevaluating its position, according to spokeswoman Holly Sheffer.