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Call Goes Out For Terror Cover Comments

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The President’s Working Group on Financial Markets is seeking public comments on the long-term availability and affordability of insurance for terrorism risk.

The working group, an arm of the U.S. Treasury Department, will be publishing a request for comments on terrorism risk insurance in the Federal Register in the near future.

The government does not provide terrorism reinsurance for group life insurers.

In 2006, the working group reported that there appeared to be little potential for future market development of terrorism risk insurance for losses associated with chemical, nuclear, biological, and radiological attacks, but that the group life market appeared to be doing well and that there appeared to be improvements in the availability of catastrophic life reinsurance.

Group life insurers have argued that reinsuring against an event as unpredictable as a large-scale WMD attack is not possible, because there is no way to price group life WMD reinsurance accurately.