Travel insurers are withdrawing cover for people wanting to travel to countries affected by Severe Acute Respiratory Syndrome (SARS). American Express is leading the charge to cancel policies covering countries where travellers have been warned by their governments not to go. That includes Canada, Hong Kong and China.

Although the SARS death toll hasn’t been particularly high – about 5% of 4650 cases reported around the world – the insurers are obviously heeding the concern being expressed by leading epidemiologists about SARS, which has no known cure at this point.

American giant AIG, which was founded in China by the legendary Cornelius Van Der Starr and gets nearly 30% of its income from Asia, said in New York that SARS didn’t affect profits in the first quarter of 2003, but may have an impact in the current quarter as travel in the region is limited and commercial activity slows.

Nevertheless, AIG CEO Maurice Greenberg said general insurance premiums rose 30% to a record first quarter turnover of $13.2 billion, giving a profit of $3.24 billion – a figure close to the corresponding quarter last year. This reflects AIG’s moves to sell off some investments at a loss.