Comments on: Kudos to the President for proposing to scale back terrorism reinsurance http://keithhennessey.com/2009/06/20/tria/ Your guide to American economic policy Wed, 17 Mar 2010 06:55:54 -0400 http://wordpress.org/?v=abc hourly 1 By: Storage Containers http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-12812 Storage Containers Thu, 22 Oct 2009 03:19:27 +0000 http://keithhennessey.com/?p=2263#comment-12812 Thanks for the information.The article was very informative.I liked the article and I expect more article of this kind in future from You. Thanks Storage Containers <a href="http://www.boxtcontainers.com" target="_blank">www.boxtcontainers.com</a> <div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('12812','Storage Containers'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('12812','Storage Containers',' \nThanks for the information.The article was very informative.I liked the article and I expect more article of this kind in future from You. \n \n \nThanks \nStorage Containers \n<a href=\"http:\/\/www.boxtcontainers.com\" target=\"_blank\">www.boxtcontainers.com<\/a> '); return false;">Quote</a></div> Thanks for the information.The article was very informative.I liked the article and I expect more article of this kind in future from You.

Thanks
Storage Containers
http://www.boxtcontainers.com

Reply – Quote
]]> By: The President’s press conference: health | KeithHennessey.com http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1856 The President’s press conference: health | KeithHennessey.com Wed, 24 Jun 2009 14:53:37 +0000 http://keithhennessey.com/?p=2263#comment-1856 [...] Private property and casualty insurers are not selling terrorism insurance above a certain amount.  They were crowded out by the government program. [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1856','The President’s press conference: health | KeithHennessey.com'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1856','The President’s press conference: health | KeithHennessey.com','[...] Private property and casualty insurers are not selling terrorism insurance above a certain amount.  They were crowded out by the government program. [...]'); return false;">Quote</a></div> [...] Private property and casualty insurers are not selling terrorism insurance above a certain amount.  They were crowded out by the government program. [...]
Reply – Quote
]]> By: Kurmudge http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1775 Kurmudge Tue, 23 Jun 2009 16:54:51 +0000 http://keithhennessey.com/?p=2263#comment-1775 These kinds of programs (flood insurance is another one) have some logic to them, but there is a clear moral hazard, as well as the perpetuality pressure that Keith discusses. Sunset it! The US reinsurance industry could use the business. No program like this should ever be in place unless it is a doughnut policy- that is, a meaningful gap between reserves and government back-up, so that there is a clear point where it comes out of your hide and extracts pain before you can tap the Uncle to avoid insolvency. Whenever coverage starts at too low a level, it is an invitsation to shift claims costs.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1775','Kurmudge'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1775','Kurmudge','These kinds of programs (flood insurance is another one) have some logic to them, but there is a clear moral hazard, as well as the perpetuality pressure that Keith discusses. Sunset it! The US reinsurance industry could use the business.\r\n\r\nNo program like this should ever be in place unless it is a doughnut policy- that is, a meaningful gap between reserves and government back-up, so that there is a clear point where it comes out of your hide and extracts pain before you can tap the Uncle to avoid insolvency. Whenever coverage starts at too low a level, it is an invitsation to shift claims costs.'); return false;">Quote</a></div> These kinds of programs (flood insurance is another one) have some logic to them, but there is a clear moral hazard, as well as the perpetuality pressure that Keith discusses. Sunset it! The US reinsurance industry could use the business.

No program like this should ever be in place unless it is a doughnut policy- that is, a meaningful gap between reserves and government back-up, so that there is a clear point where it comes out of your hide and extracts pain before you can tap the Uncle to avoid insolvency. Whenever coverage starts at too low a level, it is an invitsation to shift claims costs.

Reply – Quote
]]> By: Terrorism Reinsurance Scaled Back by Obama « The Final Minority Report http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1740 Terrorism Reinsurance Scaled Back by Obama « The Final Minority Report Tue, 23 Jun 2009 03:09:21 +0000 http://keithhennessey.com/?p=2263#comment-1740 [...] 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 [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1740','Terrorism Reinsurance Scaled Back by Obama « The Final Minority Report'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1740','Terrorism Reinsurance Scaled Back by Obama « The Final Minority Report','[...] 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 [...]'); return false;">Quote</a></div> [...] 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 [...]
Reply – Quote
]]> By: Caroline http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1739 Caroline Tue, 23 Jun 2009 02:59:55 +0000 http://keithhennessey.com/?p=2263#comment-1739 Sam: We are paying for that already, and paying and paying and paying....................................<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1739','Caroline'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1739','Caroline','Sam: We are paying for that already, and paying and paying and paying....................................'); return false;">Quote</a></div> Sam: We are paying for that already, and paying and paying and paying………………………………
Reply – Quote
]]> By: Instapundit » Blog Archive » KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance…. http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1725 Instapundit » Blog Archive » KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance…. Mon, 22 Jun 2009 22:57:39 +0000 http://keithhennessey.com/?p=2263#comment-1725 [...] KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance. [...]<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1725','Instapundit » Blog Archive » KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance….'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1725','Instapundit » Blog Archive » KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance….','[...] KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance. [...]'); return false;">Quote</a></div> [...] KEITH HENNESSEY: Kudos to the President for proposing to scale back terrorism reinsurance. [...]
Reply – Quote
]]> By: Sam http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1717 Sam Mon, 22 Jun 2009 20:40:20 +0000 http://keithhennessey.com/?p=2263#comment-1717 How about insurance coverage for the damage Obama has done to the country and plans to accelerate in the future?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1717','Sam'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1717','Sam','How about insurance coverage for the damage Obama has done to the country and plans to accelerate in the future?'); return false;">Quote</a></div> How about insurance coverage for the damage Obama has done to the country and plans to accelerate in the future?
Reply – Quote
]]> By: John R. Graham http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1716 John R. Graham Mon, 22 Jun 2009 20:36:25 +0000 http://keithhennessey.com/?p=2263#comment-1716 No, no, no Mike D. Government should never subsidize terrorism insurance because investors then "slack off" in their demands for effective national security - a terrible moral hazard. We don't want the largest commercial landlords, banks, etc. to say to themselves: "Who cares about terrorism? We're insured." You want them to lobby for good national security. Even if your model worked efficiently (in the actuarial sense), it would require the government to signal to the markets what it thinks the risk of terrorism is - a terrible idea!<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1716','John R. Graham'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1716','John R. Graham','No, no, no Mike D. Government should never subsidize terrorism insurance because investors then \"slack off\" in their demands for effective national security - a terrible moral hazard. We don\'t want the largest commercial landlords, banks, etc. to say to themselves: \"Who cares about terrorism? We\'re insured.\" You want them to lobby for good national security.\r\n\r\nEven if your model worked efficiently (in the actuarial sense), it would require the government to signal to the markets what it thinks the risk of terrorism is - a terrible idea!'); return false;">Quote</a></div> No, no, no Mike D. Government should never subsidize terrorism insurance because investors then “slack off” in their demands for effective national security – a terrible moral hazard. We don’t want the largest commercial landlords, banks, etc. to say to themselves: “Who cares about terrorism? We’re insured.” You want them to lobby for good national security.

Even if your model worked efficiently (in the actuarial sense), it would require the government to signal to the markets what it thinks the risk of terrorism is – a terrible idea!

Reply – Quote
]]> By: Mike D http://keithhennessey.com/2009/06/20/tria/comment-page-1/#comment-1644 Mike D Sun, 21 Jun 2009 14:29:03 +0000 http://keithhennessey.com/?p=2263#comment-1644 Could you make the argument that the government is the ideal terrorism insurance provider, as they control the best actuarial information regarding terrorism? Additionally, the government has the best terrorism claims management through intelligence and law enforcement. To some degree, selling terrorism insurance would be an effective method of funding anti-terrorism efforts.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('1644','Mike D'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('1644','Mike D','Could you make the argument that the government is the ideal terrorism insurance provider, as they control the best actuarial information regarding terrorism? Additionally, the government has the best terrorism claims management through intelligence and law enforcement. To some degree, selling terrorism insurance would be an effective method of funding anti-terrorism efforts.'); return false;">Quote</a></div> Could you make the argument that the government is the ideal terrorism insurance provider, as they control the best actuarial information regarding terrorism? Additionally, the government has the best terrorism claims management through intelligence and law enforcement. To some degree, selling terrorism insurance would be an effective method of funding anti-terrorism efforts.
Reply – Quote
]]>