[StBernard] BIG "I" Applauds House Committee For Reviewing Natural Disaster Legislation

[Westley Annis]

BIG "I" Applauds House Committee For Reviewing Natural Disaster Legislation

New York agent testifies on need for national solution  

Insurance News.net (From a news release)

 

WASHINGTON, D.C., September 6, 2007- The Independent Insurance Agents &
Brokers of America (the Big "I"), the nation's largest insurance
association, testified today before a joint hearing of the House Committee
on Financial Services Subcommittee on Housing and Community Opportunity, and
the Subcommittee on Capital Markets, Insurance, and Government Sponsored
Enterprises to discuss H.R. 3355 , the Homeowners' Defense Act of 2007.

 

Steve Spiro, an independent agent and President of Spiro Risk Management
Inc., in Valley Stream, New York, testified on the importance of natural
disaster legislation.  On behalf of the Big "I", the only producer trade
association testifying at the hearing, he thanked Reps. Ron Klein (D-Fla.)
and Tim Mahoney (D-Fla.) for introducing the Homeowners' Defense Act,
intended to address the growing problem of natural disasters risks.  

 

Spiro expressed the Big "I"'s belief that the bill deserves serious
consideration and that these proposals could potentially be a part of a
comprehensive solution to the problem of natural catastrophe insurance.  He
pointed out that the key to the success of any solution is how the private
market will react and whether it will result in increased coverage.

 

"We strongly believe our industry must come together with policymakers to
find a common solution that will encourage participation in at-risk
markets," said Spiro.  "We believe the Homeowners Defense Act of 2007
provides a number of provisions that could have a positive impact on the
availability and affordability of natural disaster insurance.  However,
there are important questions associated with these provisions that must be
answered."  

 

Spiro pointed out that one strength of the Homeowners' Defense Act of 2007
lies in its attempt to have a plan in place to encourage greater
availability of reinsurance for the private markets. Spiro stressed that the
goals of the legislation are consistent with the Big "I"'s long-standing
principle that the best solution is for a program to be in place before the
events happen and assistance from the government should be limited.

 

"Any solutions should have a clear, well-structured mechanism that
encourages the private sector to handle as much of the risk as possible, and
only trigger federal involvement as a last resort upon private marketplace
failure." said Spiro.  "We believe that it is important to have such a
structure in place to protect both consumers and taxpayers living in all
areas across the country."

 

Finally, Spiro reiterated the Big "I"'s desire for the insurance industry to
come to a consensus to find a solution to the catastrophe insurance
availability crisis.  He also praised the Committee along with Rep's Klein
and Mahoney, as well as Rep. Ginny Browne-Waite (R-Fla.) and Rep. Bobby
Jindal (R-La.) for taking the lead, bringing forward proposals and working
together to find the answer.

 

"The Big "I" is committed to an open dialogue with all interested parties in
the public and private sectors to address these important issues that
consumers face.  We stand ready to assist your efforts in any way we can,"
said Spiro.

 

Founded in 1896, IIABA (the Big "I") is the nation's oldest and largest
national association of independent insurance agents and brokers,
representing a network of more than 300,000 agents, brokers and their
employees nationally. Its members are businesses that offer customers a
choice of policies from a variety of insurance companies. Independent agents
and brokers offer all lines of insurance-property, casualty, life, and
health-as well as employee benefit plans and retirement products. Web
address: www.independentagent.com.