Making The Case For Terror Re

To The Editor:

Regarding your Feb. 25 editorial, "TerrorismReinsurance Debate Set To Heat Up On Capital Hill," there should beno debate. If the events of Sept. 11 had not been insured, theeffects of the terrorist acts would have been more intenselypainful and permanent.

Because of the lack of sufficient insurance, we are much morevulnerable to further attacks than we were in September. Thatvulnerability is already impeding economic activity. If similarattacks do occur under the present circumstances, they will be muchmore effective in damaging our spirits and shaking our confidence.That could have a truly disastrous effect, not only on businessactivity and on markets, but on our monetary system as well.

Military threats may grab the headlines, but the real response toterrorists is to demonstrate that the economic system we supporthas the financial resources and our politicians have the will toinsure against any financial damage they can cause. An effectivegovernment reinsurance program is essential to this effort. To doanything less is to admit that the terrorists have been successfulin their efforts to disrupt our lives.

Once such a backstop is in place, it will be up to insurers to makecertain that terrorism insurance is broadly available at pricesless than prohibitive. That will be a test of the will and thegumption of the private sector. Lets hope they can pass thattest.

Charles A. McAlear
N
ew Orleans,La.


Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, March 25, 2002.Copyright 2002 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.




Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.