The cost of last week's terrorist attacks could be double that of Hurricane Andrew, previously the most expensive insured event in history, rating agency Fitch has warned.
The cost of last week's terrorist attacks could be double that of Hurricane Andrew, the most expensive insured event in history, rating agency Fitch has warned.
The firm believes the total losses from property and casualty claims alone could be up to $30bn (£20bn), with several billion dollars' worth of additional claims on life insurance, accident and health policies.
It put the cost of Hurricane Andrew, which wreaked devastation in Florida and the Bahamas in 1992, at $16bn.
It said huge costs would fall on reinsurers, with most of the claims relating to the hijacked aircraft in the US falling on London.
It warned that insurers could go bust as a result of the claims, although it said it did not expect imminent insolvencies.
Fitch is launching a review of insurers to discover if they can pay claims. The study is expected to include London-based firms exposed to risks from the US.
The company said in a statement: “Based on preliminary reports, Fitch believes that the insured losses from these events could ultimately prove to be the largest in history. Early estimates peg property/casualty-related losses as high as $20bn (£13bn) to £30bn (£20bn).
“Further, there will likely be several billion dollars' worth of claims to life/health insurers on life insurance policies and accident and health policies.”
The firm said it was not making its own estimate of costs and said figures could change.
It said: “Fitch believe
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