The U.K.’s Hiscox Plc, which writes business through the Lloyd’s market and independently, released its estimate that the Sept. 11 attacks in the U.S. would cost it around £20 million ($29.25 million).
Hiscox accounts for around 5 percent of the Lloyd’s market, and its shares had been severely affected by the WTC disasters. Its announcement included assurances that it possessed sufficient liquidity to cover losses, and anticipated a sharp rise in premiums as a result of decreased capacity in reinsurance markets and the consequent pressure on primary insurers to raise premiums.
The company’s Chairman Robert Hiscox told Reuters News Agency that “People will have to pay the proper price for their insurance. For the past five years, they paid too little, the insurance industry has not been able to pay claims out of the premiums.”
Lloyd’s has not yet released overall figures for the consequences of the disasters in the U.S., but has said that some of its syndicates, particularly in the aviation market, will have substantial losses.
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