Sept. 11-A Year Later

In this issue, we pause for a moment and try to grasp the meaning and impact of ‘9/11’ on the insurance industry.

It’s difficult to find words to describe the tragedy of Sept. 11th, 2001 and its effect on the industry. ‘9/11’ is truly a cataclysmic event in the history of the insurance industry worldwide. The magnitude of this singular event and its effects on the industry won’t be fully understood for years to come. What is very important to remember is that the industry did its job. It took a hit of $30 to $50 billion dollars and is still standing. The insurance industry delivered on its promise.

The industry was headed for a hard market before ‘9/11’, but at a slow, almost reluctant pace. ‘9/11’ pushed the industry over the edge of the abyss. Higher premiums, lack of availability, lower limits and uninsurable risks are just the beginning. These are the financial effects and they are measurable. The emotional effects are more difficult to measure. Can any business, in good conscious, concentrate their people in a high rise building again? And what does that portend for the future of business centers and major cities? ‘9/11′ was an attempt to rip the very fabric of our society.

The entire editorial staff of the Insurance Journal contributed articles to this issue.

Cynthia Beisiegel writes about the financial effects on the industry and Joe Mangan relates the stories of two insurance industry members who witnessed the attacks and survived. Both the commercial property and workers’ comp markets were heavily impacted by the Sept. 11th losses. Stephanie Jones provides an overview of how those markets are faring. Charles Boyle examines what’s going on in the Swiss Re/Silverstein Properties World Trade Center lawsuit, and Stewart Eisenhart updates you on the current progress of the Federal Terrorism Bill. Dave Thomas discusses the insurance fraud that arose from the WTC disaster, which is surprisingly low. Finally, in our ‘Parting Shots’ segment, Joseph Petrelli of Demotech looks at P&C insolvencies and what the numbers look like for the coming year.

Stepping aside from 9/11 for a moment, we also take a look at the latest trends in cyber liability. Neil Kransdorf and Steven Dyson of E-Risk Services update readers on the ramifications of cyber liability and how to protect yourself and your business.

Please let me know what you think of this issue, good or bad. You can contact me by email at mwells@insurancejournal.com

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Topics Market