Global Insurance System Has Financial Strength to Handle Losses

The global insurance system has the financial strength to handle the losses from the terrorist attacks of Sept. 11, according to the Insurance Information Institute (I.I.I.). Insurance losses from the attacks will be shared throughout the worldwide insurance and reinsurance system and not be borne by any single company. Insurance coverage on large risks such as the World Trade Center and airlines traditionally are insured by a number of insurance companies, which, in turn, share their portion of the risk with reinsurance companies, explained Dr. Robert Hartwig, I.I.I. vice president and chief economist. "The global insurance and reinsurance industry has the financial structure and strength to absorb a catastrophic loss such as occurred yesterday," Hartwig said. "There is layer upon layer of coverage so that no single company bears the brunt of the loss alone."