The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

Terrorism Reinsurance Scaled Back by Obama

For a political animal such as myself, I’ve never heard of this:

Kudos to the President for his proposal to scale back the subsidy for terrorism reinsurance. I wish he had gone all the way to eliminate this program during this term, but I’ll take the partial win.

After the 9/11 attacks, parts of the market for insurance against terrorist attacks evaporated. Insurers rely on statistical data to determine the chance of a future terrorist attack, and therefore the chance that they will have to pay a claim. Insurers were no longer able to estimate the chance that the Empire State Building, or a new stadium, would be attacked, and so they were unwilling to sell terrorism insurance for these kinds of high-value terrorist targets.

This caused further problems, because some real estate developers could not get bank loans without insurance against a terrorist attack.

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06/23/2009 Posted by | Government Debt, Obama - Domestic Policy | | Leave a comment