Lloyd‘s Comments on Effects of Attacks, May Revise Claims Estimates

Lloyd‘s Chairman Sax Riley told delegates at the Association of Risk Managers and Insurance Managers of Australasia conference in Canberra that the Sept. 11 attacks mean a return to "insurance basics," starting with a thorough examination of their clients‘ corporate balance sheets. "The impact of September 11 means it‘s back to the balance sheet for buyers of insurance," Riley indicated. "While the increase in the price of insurance is widely recognised, what‘s not so well understood is that less insurance may well be available. Businesses need to conduct a full analysis of risks that could have a material impact on their balance sheets and obtain cover for those first. Then any additional cover can be purchased later if capacity permits and if prices make it economic." Riley listed some of Lloyd‘s conclusions about the 2002 insurance market triggered by the attacks.