Lloyd’s gains reprieve on WTC claim payment deadline

Lloyd’s of London gained a last-minute reprieve from the National Association of Insurance Commissioners (NAIC) and the New York Insurance Department on its deadline for full payment of claims relating to the September 11 terrorist attacks.
Lloyd’s had initially been given a deadline of November 15 by the insurance regulators to deposit in full the payment of claims. Lloyd’s has estimated its loss resulting from the World Trade Center (WTC) and four airliners at around US$5.36 billion, although a significant portion of this amount would presumably be covered by reinsurance. Lloyd’s is now expected to pay 60% of its claims’ amount of US$3.2 billion by November 15, and the remainder by next year March. “We are very pleased to have this matter clarified. This has always been a question of short-term liquidity, not solvency,” says Lloyd’s chairman Sax Riley.