Should the government be still insuring against terrorism?
The facts show that the insurance market is now well capitalized and reinsurers are offering terrorism insurance across the globe, thanks to improved and sophisticated modeling. In addition, there is excess capacity in the reinsurance market – suggesting that prices are favorable for insurers and policyholders. In fact, reviewing Cato’s analysis, R Street showed that re-insurance prices continue to slide to about half the rates of just five years ago. If there is plenty of cheap capital in the private market, why not bring the private sector back into the business?