NU Online News Service, Oct. 12, 11:57 a.m. – Ernst & Young’s Insurance Industry Services practice has released a report on the effects of the Sept. 11 terrorist attacks on New York’s World Trade Center and the Pentagon.
For life insurers writing variable products, direct losses may be exceeded by indirect costs related to the equity market volatility that has been exacerbated by this event, the report says.
A major direct impact on health and disability insurers is not expected because workers’ compensation benefits will generally be primary, the report says.
However, an increase in mental health claims is likely, and disability insurers may see a surge in stress-related and other claims from individuals covered under individual disability insurance policies, the report says.