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FT.com / Home US - Jury calls WTC attack two events
by dmv at 8:49 pm EST, Dec 6, 2004

] NEW YORK, Dec. 6 (Reuters) - A jury on Monday decided the
] hijacked airline attacks that destroyed the World Trade
] Center were two separate events, doubling to $2.2 billion
] the damages leaseholder Larry Silverstein can collect
] from insurers.

This is a big deal, a lot of the insurance world was holding its breath on this. Not only is it a significant settlement (+$1.1B is never small) but a significant precident in insurance coverage in the terrorist age.

RE: FT.com / Home US - Jury calls WTC attack two events
by Decius at 9:09 pm EST, Dec 6, 2004

dmv wrote:
] ] NEW YORK, Dec. 6 (Reuters) - A jury on Monday decided the
] ] hijacked airline attacks that destroyed the World Trade
] ] Center were two separate events, doubling to $2.2 billion
] ] the damages leaseholder Larry Silverstein can collect
] ] from insurers.
]
] This is a big deal, a lot of the insurance world was holding
] its breath on this. Not only is it a significant settlement
] (+$1.1B is never small) but a significant precident in
] insurance coverage in the terrorist age.

Ugh... that means your rates for insurance are going to go up. Again.

RE: FT.com / Home US - Jury calls WTC attack two events
by dmv at 8:46 pm EST, Dec 20, 2004

Decius wrote:
] ] This is a big deal, a lot of the insurance world was holding
] ] its breath on this. Not only is it a significant settlement
] ] (+$1.1B is never small) but a significant precident in
] ] insurance coverage in the terrorist age.
]
] Ugh... that means your rates for insurance are going to go up.
] Again.

Unlikely in most cases, unless you are talking about business insurance. And specifically, large/catastrophic policies. The companies that were hit hard with this were the ReInsurers -- I think Munich and Swiss Re are the major players in the WTC market, but I haven't tracked that industry much lately.

One of the floating questions, though, was that some of these Re's are in shaky financial position already, from curious derivitives plays, large exposures, improper policy discipline. And the business is such that it doesn't take much to cause a Re catastrophy, as their business is entirely based on their credit rating, and so payoffs reduce their liquidity, which can trigger a rating deduction, and if you go below A or A-... forget it. Debt covenants, cost of capital...