The insurance industry can play a key role in the war against terrorism, one of President Bush's advisers claimed yesterday.

Richard Falkenrath, senior director for policy in the White House Office of Homeland Security, said insurance has a "very important role to play in homeland security".

He added that Bush had "expended a great deal of effort" in getting the US terrorism legislation passed, in a bid to improve economic and security conditions.

Falkenrath added that insurers "need to find a way to put a number" on the chances of terrorist attacks. He said: "You can help us get this right."

He added that insurers could play a role in helping the government apply risk management principles to its exposures.

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