Attack Losses Expected to Alter Markets

Analysts are forecasting price hikes and broad market shifts in both the primary and reinsurance sectors, as well as reconsideration of the alternative markets as a result of terrorist attack losses. Rate increases are expected following the destruction of the World Trade Center in New York, said Matt Mosher, group vice president, property-casualty for A.M. Best in Oldwick, N.J. "It's an eye-opening event to underwriters. Their consideration of risk changed significantly [on] Tuesday," Sept. 11, he said. Because larger commercial companies will bear the brunt of the losses, there may be a "shift in competitive dynamics" going forward, added Adam Klauber, managing director of Cochran, Caronia Securities in Chicago.