US political division may impact risk issues
The volatile politics of the US could influence some significant issues for reinsurers this year.
That is the view of John Huff, chief executive officer of the Association of Bermuda Insurers and Reinsurers.
Mr Huff, on a panel at the Joint Industry Forum in New York, referred to the uncertainties created by a divided Congress and the US Government shutdown, Business Insurance reported.
“If you think about the National Flood Insurance Programme and flood insurance reform, this is a critical stage as we go through whether there may be some opportunities to shift some of this taxpayer risk to the private market,” Mr Huff said.
Also, the upcoming renewal of the US Government’s terrorism insurance backstop initially created by the Terrorism Risk and Insurance Act of 2002, and better known as Tria, is also a concern.
A divided government may have implications “as we go through TRIA renewal at the end of next year and what it might mean for the private sector to take on more of that risk”, Mr Huff said.
Earthquake risk, particularly as it relates to the mortgage market, could also be influenced by US politics, Mr Huff said. Crop insurance could also see an impact because of implementation of the Farm Bill, he added.