US insurance claims will run into billions

The insurance industry could be in line for the biggest claims in its history following Tuesday’s terrorist attacks in the US.

Within minutes of the attack, insurance stocks were plummeting in the face of claims which are certain to amount to billions of dollars.

Lloyd's of London is just one insurance house that could be in line for the ‘crippling’ claims, industry experts said.

Insurance industry watchers say the World Trade Center itself is insured for around £1 billion. However the claims will cover not only the damage to the World Trade Center itself and any rebuilding plans, but also the huge cost to surrounding buildings from the blast and the subsequent collapse of both towers.

Airlines, too, are likely to face large claims not only for the jest lost, but also for liability resulting from the prolonged shutdown of the entire US air network.

Although little is known yet about how many people have lost their lives as a result of the attack, life insurance claims are likely to weigh very heavily on the industry. (MB)