Lloyd's of London today confirmed estimates of the cost of covering the destruction wrought in the US...
Chairman Sax Riley also warned of further bad news to come.
"The long-term impact of the US attacks on the insurance industry is yet to be fully appreciated. Lloyd's is open for business and trading forward. Clearly there will be a contraction of global insurance capacity, which will fuel the premium rate rises we have been seeing since the last quarter of 2000," he said.
Newspapers reported this morning that the bill is set to be Lloyd's highest ever for a single incident since Hurrican Hugo in 1989 and that the market is likely to make cash calls on names.
A Lloyd's spokeswoman said it would be impossible to put out a figure on the cash call because it would be determined by individual circumstance.
"Cash calls go out all the time. Obviously there will be one because of this, but the size will depend on how much has been underwritten in a syndicate, what the exposure of that syndicate is, as well as a raft of other issues. It is impossible to come up with a figure, it will depend on the individual case," she said.
Lloyd's says its market will not be threatened by covering the costs due to the size of its asset base and reinsurance contracts already in place.
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