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Plunge Protection Team Posts Terror Comment Call

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The President’s Working Group on Financial Markets wants comments about availability of insurance for terrorism risk to come in by Aug. 2.

The working group, informally known as the Plunge Protection Team, was created in response to the Oct. 19, 1987, Black Monday stock market crash. The working group is supposed to help the government maintain orderly, competitive financial markets.

The working group now is responsible for helping to assess the availability and affordability of terrorism risk coverage. The group compiled its last report on the topic in 2006.

Congress has rejected several efforts to offer group life insurers federal protection against acts of terrorism involving weapons of mass destruction.

The working group does not refer directly to group life in the new terrorism insurance request for comments.

The working group does ask about “the key factors that determine the amount of private-market insurer and reinsurer capacity made available for terrorism risk insurance coverage.”

“How will such factors evolve in the long-term and upon what factors will available capacity most depend?” the working group asks.

The group also asks about how the state of the financial markets has affected terrorism risk insurance.

“Please comment on potential entry of new capital into, as well as any exits from, the terrorism insurance and reinsurance market,” the group says.


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