With the need for ever increasing sums of money to fuel the ongoing campaign for majority control, both Republicans and Democrats have made large donations to the party and its candidates mandatory for members seeking advancement within party and congressional committee hierarchies. Eric S. Heberlig and Bruce A. Larson analyze this development and discuss its implications for American government and democracy. They address the consequences of selecting congressional leaders on the basis of their fundraising skills rather than their legislative capacity and the extent to which the battle for majority control leads Congress to prioritize short-term electoral gains over long-term governing and problem-solving.

Is it possible that the insurance and reinsurance industries cannot handle a major catastrophe? Ten years ago, the notion that the overall cost of a single catastrophic event might exceed $10 billion was unthinkable. With ever increasing property-casualty risks and unabated growth in hazard-prone areas, insurers and reinsurers now envision the possibility of disaster losses of $50 to $100 billion in the United States.

Against this backdrop, the capitalization of the insurance and reinsurance industries has become a crucial concern. While it remains unlikely that a single event might entirely bankrupt these industries, a big catastrophe could place firms under severe stress, jeopardizing both policy holders and investors and causing profound ripple effects throughout the U.S. economy.

The Financing of Catastrophe Risk assembles an impressive roster of experts from academia and industry to explore the disturbing yet realistic assumption that a large catastrophic event is inevitable. The essays offer tangible means of both reassessing and raising the level of preparedness throughout the insurance and reinsurance industries.