Global Reinsurance has undergone a change After a lengthy period of discussion both internally and with the industry at large, the April issue sees the next step in the evolution of the magazine.
As a publication, Global Reinsurance has gone through four previous regenerations, and as the magazine celebrates its 15th anniversary we enter the fifth phase in its development. What we have sought to do in the revision process is to enhance the accessibility of the publication while also maintaining the levels of in depth, informed analysis which have formed the backbone of Global Reinsurance since its inception in 1990.
In order to achieve this we have retained the core elements of the magazine, and will continue to provide specific focuses each month, eg run-off, captives, asset management, coupled with analysis of key issues affecting the re/insurance marketplace.
In conjunction with these tried and trusted sections, the April issue sees the introduction of six new features: Global Matters, Industry Matters, Country Analysis, Company Analysis, Investment Analysis and CEO Q&A. These new entrants are compiled by our in-house reporting team, our international bureau of correspondents and influential figures heading up the re/insurance industry, providing a broad array of perspectives on the issues currently shaping the market.
Global Reinsurance would like to take this opportunity to thank all of those people who have contributed to the relaunch of this publication.
TIME'S UP FOR TRIA
The April issue leads with the article "Pulling down TRIA". The uncertainty which surrounds the Terrorism Risk Insurance Act is growing on a daily basis as the deadline for dismantlement of the act approaches. Set up to ensure the continuation of property/casualty terrorism cover, the legislation saw the US government become the world's largest reinsurer. Always temporary, however, unless the act is amended or a new one introduced, Saturday 31 December 2005 will see the government hand in its reinsurance badge.
TRIA has been an unmitigated success in guaranteeing uninterrupted terrorism cover, but by legislating that insurers must continue to provide such cover at rates similar to those prior to the terrorist attack of September 11, the act was never going to fail on this front. However, where TRIA appears to have failed is in allowing for the creation of a sufficiently robust private market for terrorism cover that can fill the gap which will be left by the withdrawal of the federal backstop.
While we await the outcome of the US Treasury study into the effectiveness of TRIA, due to be completed by 30 June 2005, the insurance industry appears to be in little doubt as to the results. Since early 2004, the call for TRIA to be extended to 2007 has echoed across the US, with bills piling up on the steps of the US Senate, but will the government listen?
The government is keen to allay the fears of the industry and is at pains to reassure insurers that they will not leave them in the lurch. "Because of the importance of this element of the war on terror," stated Acting Assistant Secretary for Financial Institutions Greg Zerzan, "insurers and insured alike should know that this Administration is fully considering all of the possible options in order to make sure that this front is properly covered."
A long-term solution is required, but time is running out for TRIA, and unless the act is extended in the next few months, the market for terrorism cover could disappear.