No insurance company was bankrupted because of the September 11 terror attacks, according to a study by US university Ball State. The Indiana university says the initial estimate of $US70 billion in claims relating to the destruction of the World Trade Centre and damage to New York commercial buildings and the Pentagon in Washington, DC, was double the actual cost.

The report found insurers have paid out $US30-35 billion. But because of reinsurance, no single company bore the brunt of the claims.

Meanwhile, Marsh & McLennan Chairman and CEO Jeff Greenberg has told the US Insurance Journal that the period of disruption after 9/11 was relatively short and capacity returned to most markets fairly quickly.

“In order to analyse the impact of 9/11, you must distinguish between changes in the past three years that were directly related to 9/11 versus the other factors, like the prolonged soft market, tough loss environment leading up to 9/11, asbestos and environmental issues, corporate governance scandals and poor investment climate.

“What 9/11 showed is that the industry dynamics mean that a large loss can be absorbed because it will be spread throughout many insurers and reinsurers, and no single insurer will bear the entire brunt.”