
The challenge of terrorism and insurer of last resort 303
largest in the world; the US financial landscape is also the largest in terms of both
insurance and reinsurance premiums; the market for insurance-linked risk effectively
originated with the catastrophe-linked options and futures introduced by the Chicago
Board of Trade (CBOT) in 1992; and there has been openness to financial innovations
in the US capital market.
Globalization, however, alters this frame of reference and it also poses some
interesting questions in terms of capital market response in the different G-10
countries. Another intriguing query is what sort of information will be necessary ...