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This presentation by the ̽»¨¾«Ñ¡ Information Institute’s President and Chief Economist for the centenary lecture series of the ̽»¨¾«Ñ¡ Institute of London examines the role of the government in insurance markets, noting that the issue is a matter of increasing importance and controversy. Historically, regulation of insurers and insurance markets has been the essential function performed by the state.  More recently, the state itself is being called upon to perform the function of insurer or reinsurer.  Recent events, including the terrorist attacks of September 11, 2001 and the record hurricane losses sustained in the United States in 2004 and 2005 have accelerated the call for direct government participation in insurance markets.  Some of this participation, such as the provision of terrorism insurance, is at the invitation of insurers. Other actions, including the significant expansion of the state-operated Florida Hurricane Catastrophe Fund, have been greeted with hostility and skepticism by reinsurers and some primary insurers, while welcomed by others.  The presentation examines the question of displacement of private insurers and reinsurers by state-run entities that are experiencing exponential growth in exposure to catastrophic loss.  The finances of several of these facilities are reviewed.  The presentation also surveys the historic role of the state in insurance markets, presents insights into current risk-based, economic and political forces coalescing into calls for a greater role for the state and concludes with an array of implications for private insurers, reinsurers, regulators and buyers of insurance.

The following presentation is called "State-Backed ̽»¨¾«Ñ¡ Schemes: The Role of Insurers". It was presented by Dr. Robert P. Hartwig on March 6, 2007.

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