NU Online News Service, Sept. 20, 1:19 p.m. – Using caution in assessing the damage that has done on the insurance industry by the Sept. 11 terror attack, Fitch ICBA, New York, says a vast majority of the insurers and reinsurers it rates will be able to absorb any losses without material damage to their financial positions. The rating agency cites the generally high levels of financial strength and credit quality maintained throughout the insurance and reinsurance industries as the reason.
Although the agency does not believe insolvencies are imminent, given the likely magnitude of losses they can not yet be ruled out. The aftershock, according to Fitch, would leave some smaller insurers or reinsurers insolvent as they are faced with undue risk concentrations.
Fitch plans to release more detailed assessments early next week.