Myths Haunt Insurers After 9/11

The many myths that have sprung up about the insurance industry’s ability to handle claims stemming from the Sept. 11 collapse of the World Trade Center have to be dispelled, cautioned Robert Hartwig, chief economist and vice president of the Insurance Information Institute in New York. Very shortly after the terrorist attacks on the United States, insurance regulators and others went to great lengths to assure legislators and the public that the insurance industry was well-capitalized to pay the resulting claims, Mr. Hartwig noted in a speech here during the annual meeting of the American Institute of Marine Underwriters. However, Mr. Hartwig also observed that many misleading numbers have been and continue to be thrown around by people who lack a real understanding of the industry's finances.