Cheeky -- better get your pollyannaglasses over to these folks...
Swiss Re America Chief Pessimistic On Y2K Outlook
NEW YORK (Reuters) - The head of Swiss Re America said Wednesday she was concerned the
United States was not prepared to cope with the Year 2000 computer bug, warning of potential
harm to the nation's economy and civil order.
Swiss Re America Chief Executive Heidi Hutter, speaking at an insurance industry conference
Wednesday, said she believes the federal government has not done enough to make sure the
nation's critical power, phone and banking systems function properly when the new year arrives.
''I am on the side of people who are significantly concerned about the potential for harm to the economy,'' Hutter said.
She said a breakdown of such critical systems could lead to civil disorder.
''It's not hard to get into a scenario where you could be extremely concerned,'' she said.
The Year 2000 or Y2K problem stems from an old programming shortcut that resulted in many computers being unable to
recognize the date change of the new century. If left uncorrected, some computers could view the year 2000 as 1900,
generating errors or system crashes.
As for the insurance industry's potential for losses on claims, she said she believes most insurance policies do not cover
problems stemming from the millennium bug.
However, she said, she expects lawyers to actively seek coverage for claims.
She said she believes it is important for the insurance industry to stand united on this issue on legal challenges, noting that a
divided front resulted in major problems on disputes over coverage for asbestos and environmental claims.
Swiss Re America is a unit of Swiss Reinsurance Co . |
