Posted On: September 19, 2007, 12:05 pm CDT

Posted By: Stat Guy

I won't bite on all the other posts but will say this: terrorism is called asymetrical war. It is a war of a few radical individuals against a sovereign nation, not your traditional war covered by international law and treaties. To that extent, terrorism should be excluded from insurnance since it, like war, results in a degree of loss severity and frequency that cannot be forecast actuarially. If it could, there would be odds on the winner and loser and bookmakers would be covering it, and there'd be no need for direct insurance, let alone a reinsurance backstop.