Two Wharton professors warned that this would lead to the Super Bowl being cancelled due to the unwillingness of insurers to cover the event, but two days into the new year and shares in the big insurers have not collapsed and rating agencies have not downgraded the insurers!
Listen closely as you walk down K Street in Washington this week and you’ll hear the sound of insurance industry lobbyists sharpening their swords. When Congress returns to work on Tuesday, it will be under intense pressure from America’s finest influence peddlers to renew a piece of legislation that few have ever heard of — the Terrorism Risk Insurance Act, a law passed after the 9/11 attacks to help insurance companies to cover businesses in case of a terrorist attack. The law expired yesterday because Congress was unable to agree to renew it before the end of the last session before the holidays. This was largely attributable to the US legislature’s inability to agree on virtually anything these days.