Government Must Be Insurer of Last Resort Wall Street Journal (11/26/01) p.A18; Greenberg, M.R.
The insurance industry does not have the needed capital to provide insurance coverage against future acts of terrorism, war, or events similar to that of Sept. 11, writes M.R. Greenberg, chairman and CEO of American International Group. In addition, any reinsurance program that would eliminate industry capital and then rely on government loans--one of Washington's various proposals--is not a solution at all. Greenberg writes in an editorial in the Wall Street Journal: "What is needed is a simple, straightforward approach under which those companies that chose to underwrite terrorist coverage would pay an appropriate premium to the government for reinsurance just as they would to any commercial reinsurer."