Comments to Federal Insurance Office on global reinsurance markets
In his letter, Lehrer notes that any federal reinsurance mechanism that displaced private reinsurance would have the effect of concentrating risk within the borders of the United States, rather than dispersing it through the global reinsurance market. Lehrer posited there may be very rare examples, such as the Terrorism Risk Insurance Program, of a government-run reinsurer that would be preferable to other alternatives.
