Thank you, Mr. Chairman.
I'd like to make a comment concerning the capacity of $650 million. Capacity is a result of supply and demand. It is also a result of experience, and in the case of the unfortunate World Trade Center events of 9/11, capacity around the world shrunk quite quickly, so that if we had been contemplating $650 million limits shortly thereafter, it would have been a struggle--perhaps not impossible--to amass that. With the passage of time and the non-occurrence of an unfortunate event of that magnitude, the market has freed up capacity. As we speak to the leaders in the U.K. pool environments and the U.K. market, to bring their building capacity eventually to $1 billion at some point in the future, optimistically speaking, should be achievable.
You ask an excellent question concerning what the government or other entity might do as an incentive to encourage insurers to participate on a larger scale, greater number of companies or increased capacity. I would mention that as part of the financial security approach, insurance companies can only commit what is called their net limit. They are forbidden to reinsure the exposure dedicated to the nuclear insurance risk. This prevents insurance companies from ending up inadvertently reinsuring their own exposure. It's a net line. It's coming from very financially solvent insurers. That way it works to bring funds that are not in any way in jeopardy of being utilized elsewhere, so that the members of the public and others are indeed properly compensated.
As regards incentives, I really don't have an opinion on that, sir.