9/11’s Costly Insurance Impact

September 9, 2011

According to the Insurance Information Institute (III), 9/11 was the largest claims payout in global insurance history. The terror attack produced insured losses of about $32.5 billion; the cost exceeded only by Hurricane Katrina.

9/11-related losses were paid out across several lines of insurance, including property, business interruption, aviation, workers compensation, life and liability.

III ranks 9/11 as the second most costly catastrophe in the United States, the only terror-related incident making the list.

THE TEN MOST COSTLY CATASTROPHES, UNITED STATES (1)

($ millions)

 

 

 

 

Insured property losses

Rank

Date

Peril

Dollars when occurred

In 2010 dollars (2)

1 Aug. 2005 Hurricane Katrina

$41,100

$45,481

2 Sep. 2001 Fire, Explosion: World Trade Center,
Pentagon terrorist attacks

18,779

22,924

3 Aug.1992 Hurricane Andrew

15,500

22,412

4 Jan. 1994 Northridge, CA earthquake

12,500

17,318

5 Sep. 2008 Hurricane Ike

12,500

12,735

6 Oct. 2005 Hurricane Wilma

10,300

11,398

7 Aug. 2004 Hurricane Charley

7,475

8,548

8 Sep. 2004 Hurricane Ivan

7,110

8,130

9 Sep. 1989 Hurricane Hugo

4,195

6,678

10 Sep. 2005 Hurricane Rita

5,627

6,227

(1) Property coverage only. Does not include flood damage covered by the federally administered National Flood Insurance Program.
(2) Adjusted for inflation through 2010 by ISO using the GDP implicit price deflator.

Source: ISO’s Property Claim Services (PCS) unit.

‘The 9/11 attack was the largest payout in the history of insurance until Hurricane Katrina in 2005,’ Dr. Hartwig said. ‘Insurers became the nation’s economic ‘first responders’ and as construction progresses on the site of the former World Trade Center, insurance claims dollars continue to play an essential and highly visible role in rebuilding lower Manhattan while also mitigating the overall economic impact of the 9/11 attack.’

 

Source: III

Latest Comments

  • September 12, 2011 at 10:55 am
    Jester says:
    Conventional insurance loss is only one element of the cost. The companion economic loss has been projected to be 5 TRILLION DOLLARS. Neither the economy nor the country has ... read more

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