September 2005 Pulse Survey Results

Terrorism Coverage and TRIA Renewal

1. Are you a current or future captive owner, a captive risk manager, a captive manager, or a service provider who is comfortable participating in this survey on behalf of your collective clients?   Response Percent Response Total     Yes 86.4% 76     No 13.6% 12 Total Respondents   88 (skipped this question)   0

2. Do you currently use a captive to insure TRIA?   Response Percent Response Total     Yes 17.4% 12     No 82.6% 57 Total Respondents   69 (skipped this question)   19

3. In light of possible major changes to TRIA renewal, what changes are you considering? (Please check all that apply)   Response Percent Response Total   No change -- I will continue to insure terrorism at the same limits and premium. 36.4% 4   I will decrease the limits I write.   0% 0   I will increase the limits I write. 9.1% 1   I will eliminate TRIA from the captive altogether. 27.3% 3   I plan to change the capitalization for the coverage I am writing. 27.3% 3   Other (please specify) 18.2% 2 Total Respondents   11 (skipped this question)   77 Comments from "other" option in Question 2 above: 1. Intend to place standalone coverage for terrorism as the captive cannot increase the capitalization necessary to retain the purported TRIA retention. 2. Will either eliminate the coverage or adjust so that the risk retained does not materially change.

4. Do you think you will use a captive to insure TRIA in the future?   Response Percent Response Total     Yes, I am considering using my captive to write TRIA coverage. 25.9% 14     No, I will continue not to write TRIA coverage 74.1% 40 Total Respondents   54 (skipped this question)   34