Insuring against Terror: Is There a Role for Government Reinsurance?
POLICY FORUMMonday, September 23, 2002
4:00 p.m.
Featuring Glenn Hubbard, Council of Economic Advisers; Anne Gron, Northwestern University; Scott Harrington, University of South Carolina; and Debra Ballen, American Insurance Association.
The Cato Institute
1000 Massachusetts Avenue, NW
Washington, DC 20001
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One year after the terrorist attacks on the World Trade Center triggered approximately $50 billion in claims against private insurers and reinsurers, a House-Senate conference committee is considering whether to authorize government participation in the market for terrorism coverage. On Labor Day, President Bush told workers in Pittsburgh that $8 billion worth of construction projects had been delayed because of lack of insurance, and he urged Congress to approve terrorism insurance legislation.
Should the federal government provide insurance coverage against future terrorism losses? Are private markets for risk management adjusting to insurance capacity shortages and the increased risks of terrorism in a post-9/11 world? Our panel will examine the respective roles of private insurers and the federal government in responding to the terrorism risk.