November 6, 2001 by Canadian Underwriter
Total insured property losses arising from the terrorist attacks against the World Trade Center and the Pentagon will likely amount to about US$16.6 billion, according to the Insurance Services Office’s (ISO) claims unit. Although this loss estimate is inclusive of business interruption claims, it does not take into account aviation-related losses, liability, life or workers’ compensation.
Gary Kerney, assistant vice president of the ISO’s Property Claims Services Unit (PCS) says about 72,000 claims will likely be generated by the September 11 events, with the majority expected to be personal lines based. Much of this relates to auto and residential buildings located in the “hot zone”, which is being used to describe the immediate area surrounding the WTC site, or “ground zero” as referred to in the recovery efforts. Many of the buildings in the “hot zone” suffered extensive damage, he notes. “On the commercial side, it’s going to be awhile before insurers can get their hands around the losses,” Kerney adds.
The PCS expects that about 50,000 personal property claims, 18,000 commercial property, and 4,000 auto claims will eventually be filed with regard to the New York attacks. An additional 1,500 personal, 200 commercial, and 300 auto claims amounting to about US$6.5 million will likely arise from the Pentagon attack. Earlier this week, the Wall St. Journal mistakenly quoted the ISO as stating that a total of 72,000 property claims valued at US$16.6 billion had already been filed with insurers.