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Banking leaders say insurance crisis must be addressed.

Article Excerpt
There is one issue that seems to be eclipsing all others affecting business and individual recovery from Hurricane Katrina: insurance. All segments of the economy are affected by the affordability and availability of insurance in the state.

"I would cajole legislators, both state and federal, that something needs to be done with insurance coverage because without insurance, the rebuilding process is going to be really stymied as it comes along," said Mississippi Banking Commissioner John Allison. "Some individuals and companies could self insure, but not enough to make a difference. Rank and file people need insurance and they need it at reasonable rates and coverages. I certainly support the concept that something needs to be done. There is no doubt about that."

Of growing importance

Allison said while the first concern is South Mississippi and the Gulf Coast, as he goes to meetings around the U.S. where federal and state banking regulators get together, insurance is growing topic of discussion.

"The vast majority of the U.S. lives within 50 miles of the water," Allison said. "It is not just an issue in the Gulf South, but the East Coast, the West Coast, Alaska and Hawaii. Everyone on the water has some of same concerns about insurance companies not writing new policies or going up on premiums and coming down on the amount of coverage."...

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