Future cloudy for terrorism insurance five years after 9/11

Future cloudy for terrorism insurance five years after 9/11

By Mark Jewell, AP Business Writer | September 3, 2006

BOSTON --Terrorism insurance has become increasingly common and
affordable five years after Sept. 11.

But that market has only emerged with the federal government's pledge
to serve as an insurer of last resort -- assistance that is tenuous,
and guaranteed only through the end of 2007.

If Congress decides the government has no business helping private
insurers absorb terrorism losses, advocates seeking a continued
government role warn coverage may revert back to what it was just
after 9/11 -- hard to find, expensive, and out of reach for most
property owners.

"Without some sort of federal support in place, we will have a return to
the dysfunctional market we had before," said Martin DePoy, a spokesman
for the Coalition to Insure Against Terrorism, a Washington-based group
representing property owners in industries such as real estate, retail
and entertainment.

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