III pegs 9/11 losses at US$40.2 billion

New York-based Insurance Information Institute (III) is tallying losses from the September 11, 2001 terrorist attacks at US$40.2 billion. The attacks represents not only the largest loss in insurance history, but also the most complex, notes III president Gordon Stewart.”The vast majority of claims for homes and autos have been paid, but commercial claims are more varied and complicated. While many have been helped, this recovery process will take years,” he says.Part of this complexity comes from the many lines of business affected by claims. III estimates losses along lines as: US$11 billion (27%) in claims for business interruption; US$10 billion (25%) in liability claims; US$6 billion (15%) in property claims for damage to property, including vehicles, other than World Trade Center (WTC) buildings One and Two; US$3.5 billion (9%) in property claims for WTC buildings One and Two; US$3.5 billion (9%) for aviation liability; US$2.7 billion (7%) in life insurance claims; US$2 billion (5%) for workers compensation claims; US$1 billion (2%) in claims for event cancellation; and US$500 million (1%) in hull claims for the loss of the four commercial aircraft.Implicit in this estimate is the position that the attacks will be considered “one event” by courts currently hearing a case from WTC leaseholder Larry Silverstein, who is attempting to collect twice the US$3.5 billion indemnity by claiming the attacks as two separate events.Another unknown is the number of liability claims that will be filed, as some claimants have not decided whether or not to file through the Victims’ Compensation Fund. Also, some business interruption files remain open as businesses either lost important documents in the disaster or have not yet moved to permanent new locations, the III explains.