Business ripples from the aftermath of the World Trade Center disaster on Sept. 11 are starting to impact the group life insurance business, regulators were told during the winter meeting of the National Association of Insurance Commissioners here.
Group life carriers are having trouble finding catastrophe coverage, said Stephen Rahn, speaking for the American Council of Life Insurers in Washington.
A future attack could expose health rather than life insurers to large claims, according to the discussion. Life insurers bore the brunt of claims in the Sept. 11 attack, because of the extensive loss of life.
However, bioterrorism, chemical and nuclear attacks make it more likely that health insurers will “pay the freight” for radiation sickness if a nuclear or “dirty” bomb is activated, commissioners were told.