
294 Operational Risk Control
䊏 How to spread losses across the insurance industry, and
䊏 Whether to spread them across an even wider base, including governments.
Those who look favourably at the message conveyed by the second point here, say
that the primary driving force behind the government’s decision to enter into
terrorism reinsurance should be to safeguard the economy’s access to needed
insurance protection. At the same time, measures must be taken to avoid bureaucracy
and therefore protect the taxpayers from inefficiency and excessive costs.
Experts opposed to government intervention as reinsurer of last resort point out
that alternative risk ...