Overview

The U.S. Treasury advanced an $85Bn emergency loan to AIG and may acquire an 80% shareholding. The Federal government has now become involved in the business of insurance in a large and unplanned way. Federal involvement will continue to change as Congress debates and authorizes this and other recent actions.

In a time of war and economic uncertainty with no incumbent candidate, Property and Casualty insurance issues have not been in the forefront of the presidential campaign. However, there have been debates about many insurance initiatives, including Federal charters and regulation for Property and Casualty insurers, and Federal involvement in providing capacity or more stable pricing for natural catastrophe risks. Insurance is not excluded from the general mood calling for change and reform.

After a long and wide-ranging primary season, the two major parties have held their nominating conventions. The conventions also developed the parties' platforms, which detail their respective positions on current issues and outline their new initiatives for leading the nation. This edition of Holborn Perspectives reviews the proposals in the two platforms and some others advanced by legislators, trade groups and insurers. To focus on Property and Casualty issues, we do not cover the wider debates on Health and Social Security issues. Holborn will continue to advise our clients on changes that affect their reinsurance and catastrophe-exposed coverages.

Section A Regulation and Federalism

Section B Federal Chartering and Regulation

Section C The National Flood Insurance Program: Refunding and Expansion

Section D National or Regional Catastrophe Pools

Section E Other Catastrophe Proposals

Section F Issues Likely Deferred After 2009

Section G Appendices

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