Risk Managers 'Disappointed' by Lack of Senate Action

Jan. 3, 2002
Members of RIMS say they are disappointed that the U.S. Senate didn't address the issue of federal terrorism insurance before the end of 2001.

Members of the Risk and Insurance Management Society Inc. (RIMS) say they are disappointed that the U.S. Senate didn''t address the issue of federal terrorism reinsurance legislation before the end of 2001.

The Jan. 1, 2002 renewal date for most property/casualty policies required immediate action by the Senate, according to the group. RIMS member companies are experiencing terrorism exclusions in their policies, as South Dakota, Colorado, Idaho and Massachusetts already approved terrorism exclusions for insurers.

"The Senate dropped the ball," says David Mair, RIMS president and associate director of risk management, United States Olympic Committee. "This is an issue for the economy and for policy holders, and this inaction will significantly impact the ability of businesses to obtain adequate insurance. We''ve already seen a drastic rise in costs, sharply diminished limits, withdrawal of coverage, and notice of non-renewal in order to add terrorism exclusion."

He added that Congress has left the infrastructure of the risk and insurance industry "too deeply damaged to be able to withstand another catastrophic incident." He says he hopes that Congress will address the regional politics and the tort-law provisions swiftly, so all policy holders will not suffer in the meantime.

Over time, lack of a federal reinsurance program will considerably impact the U.S. economy, according to RIMS. It is an economy already struggling to recover from recession. Rapidly rising coverage costs will continue, as the actual insurance coverage will probably shrink.

RIMS serves some 8,000 risk management professionals, who represent 84 percent of the Fortune 500 companies and approximately 950 small employers.

by Sandy Smith ([email protected])

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Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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