
The challenge of terrorism and insurer of last resort 307
14.6 Governments as insurers of last resort: a precedent with
deposit insurance
A critical message the preceding sections conveyed is the urgent need to improve risk
management in order to solve the uninsurability problem. A methodological way to
do so is to understand the frequency, severity, and exposure to potential claims, secure
adequate financial staying power, and price insurance coverage in a factual and
documented way. Hard work, not miracles, should be the means of finding valid
solutions to insurability.
In parallel to this, insurance and reinsurance companies should create a better ...