Commissioners To Weigh Group Life Terrorism Exclusions
Terrorism exclusions for group life and health contracts are slated to be considered this week by insurance commissioners.
Montana Commissioner John Morrison, who is chairing the effort of the National Association of Insurance Commissioners, Kansas City, Mo., says the discussion will center on these issues: 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 1400% since Sept. 11, according to interviews.
“That is, if you can get it,” says Donna Mundy, senior vice president, government relations with UnumProvident Corp. in Portland, Me.
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 if the cost is too high, she adds.