Swiss Re Rpt on Terrorism Insurance Endorses ‘Public/Private’ Solution
Friday, February 22nd, 2002 CatastropheSwiss Re has released a study entitled "Terrorism -- dealing with the new spectre," which concludes that the most promising approach to the problem of terrorism insurance is a "public/private partnership." "The report addresses the challenges insurers face after September 11 and specifically considers if terrorism risks are insurable," said Swiss Re." It presents possible solutions that insurers and reinsurers could offer to clients and also considers the role of government." Swiss Re‘s study directly confronts the impact of the events of Sept. 11, noting that prior to the attacks "the assumed maximum loss potentials attached to terrorist acts were of a controllable size and were comparable to property losses resulting from fire or explosion. On this basis, terrorism was not explicitly excluded from property policies.
