Commenting on AMRAE's proposal to set up a mutual insurance vehicle to provide cover following the September 11, 2001 terrorism attacks.
David Gamble, Executive Director of AIRMIC said: "The AMRAE initiative is an interesting one and a timely reminder that when the market fails to meet insureds' needs there are other, self-help options that are worth considering, be they self-retention, captives or mutuals. Mutuals can have an important role, especially when there is a very similar risk profile to be covered.
"The insurance markets have been through a very difficult six months which produced a great deal of volatility. AIRMIC members will be looking for clarity, certainty and for a much more proactive problem-solving approach from insurers and reinsurers. Risk managers are working hard to provide the additional information that is now required by the underwriters; their expectation is that their professionalism will be matched by the insurers.
"There are some insurers who are meeting such expectations, those that do not should not be surprised when insureds look for alternative solutions."