The legislation, which was introduced by Sen. Charles Schumer, D-N.Y., would renew the federal backstop for seven years and slightly reduce the government’s financial responsibilities. The Senate Banking Committee unanimously approved the bill in June, drawing widespread praise from trade groups representing the insurance and construction industries, as well as sports venues and universities.
The federal government first instituted the risk-sharing program following the Sept. 11, 2001, terror attacks to encourage insurers to cover major construction projects. Although originally intended as a temporary measure, it has nevertheless generated broad bipartisan support in Congress. Prior to its passage by the full Senate, the reauthorization bill won unanimous approval from the Senate Banking Committee.
The muscle behind that pledge would be the Financial Stability Oversight Council. An all-star collection of some of the nation’s highest-ranking regulators, the FSOC was conceived as a watchdog powerful and smart enough to head off the next meltdown and rein in the riskiest companies along the way. Arguably, no other agency was handed such a broad mandate — or assumed so much responsibility — in the wake of Dodd-Frank’s passage.
ACE is in solid standing within the reinsurance industry, Greenberg said during an earnings call, defending its hardline tactics during negotiations as necessary to fulfill its fiduciary duty to get a fair deal.
"Yeah, we read that in that local rag that picked that up," he said.
The company plans to double the prices for its aviation war insurance and increase its reinsurance rates by 200% to 300%. The disasters should boost demand for the coverage, O’Kane said, providing Aspen with a “market opportunity” to hike its rates.