NU Online News Service, Sept. 14, 10:25 a.m. – Standard & Poor’s predicts the Sept. 11 terrorist attacks on the Manhattan World Trade Center complex, the Pentagon and commercial passenger jets will be big, but not big enough to do severe damage to the insurance system.
“The financial losses relating to the disasters will in all likelihood exceed the largest insured losses ever yet seen,” S&P says in a statement.
S&P, which is normally based in New York but is now running its operations from London as a result of the trade center attacks, estimates total losses for life insurers will be “in the low, single-digit billions of dollars, which is not likely to cripple the industry,” S&P says.
A smaller rating firm, Weiss Ratings Inc., Palm Beach Gardens, Fla., recently reported that U.S. life insurers generated a total of $3.4 billion in profits for the first quarter alone, even though the first quarter was a tough quarter.
Although life insurers appear to have the resources to pay claims, beneficiaries may face some delays as a result of the difficulty of identifying the dead.