August 24, 2012
These comments from R Street President Eli Lehrer were offered in response to the Federal Insurance Office’s request for input on a forthcoming study of the breadth and scope of the global reinsurance market and the critical role such markets play in supporting insurance in the United States.
In his letter, Lehrer notes that any federal reinsurance mechanism that displaced private reinsurance would have the effect of concentrating risk within the borders of the United States, rather than dispersing it through the global reinsurance market. Lehrer posited there may be very rare examples, such as the Terrorism Risk Insurance Program, of a government-run reinsurer that would be preferable to other alternatives.
Filed Under: Insurance