Capacity Seen Moving After Terror Attacks.(World Trade Center terrorist attacks' impact on insurance industry)(Brief Article)

National Underwriter Property & Casualty-Risk & Benefits Management, October, 2001 by Howard, Lisa S.

In the immediate aftermath of the World Trade Center terrorist attack, there was a concern on the part of brokers about a potential capacity crunch across all lines. "Getting coverage in terrorism is going to be difficult, getting capacity in exposed areas is going to be difficult, pricing is definitely going to be increased, coverage is certainly going to be questioned and in some cases restricted," said one London market broker who didn't want to be identified.

The situation was dramatically demonstrated when aviation underwriters started to restrict coverage for war and terrorism for ground liability up to $50 million in the aggregate. Other underwriters started to exclude terrorism from their policies, which would have left companies exposed to property...

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