Insurance companies note that they are able to cover the $60 billion in possible losses related to Hurricane Katrina only because of the reinsurance available in the market to reimburse them for some of the losses; but terrorism risks are not underwritten by reinsurers, leaving primary carriers to shoulder the entire burden if TRIA is not renewed.
The fate of federal insurance regulation is also unclear as insurers focus on paying out claims and speeding up the cleanup of the U.S. Gulf region, especially when premiums are expected to rise as a result of the disaster.
Top insurance industry players are expected to testify before the House Financial Services Committee's panel on capital markets and insurance this week in relation to the storm's financial impact and its impact on housing needs.
However, many insurers are more focused on cutting through the claims process to get payments into the hands of policyholders and speed up the recovery process for the Gulf region.
