Estimates of the total losses are still over a wide range, although both minimum and maximum estimates are increasing. Latest estimates across a number of US companies and agencies range from $50 billion to $150 billion. Whatever happens, the major international analysts seem to be singing much the same tune: that the huge losses will impact on insurance and reinsurance companies in different amounts. As CSFB’s recent US analysis noted: “All insurers are not the same.”

Standard & Poor’s now says total industry losses from the recent US attacks would have to exceed $100 billion before there would be any concern over the claims-paying ability of several insurers. 

While it expects some organisations will experience weakened balance sheets, S&P’s doesn’t believe that any of the interactively rated leading insurers or reinsurers face “solvency-threatening levels of claims”.

At the NIBA Convention on the Gold Coast this week, industry leaders have agreed that sharply rising premiums are inevitable and that capacity is becoming a major problem. “The only way to get capacity back into the market is by charging more premiums,” one insurer said. “We’re probably facing rises over 50%.”