The terrorist attacks on September 11, 2001 amounted to the single largest insurance loss in history. Current estimates of the World Trade Center loss and the Pentagon crash range between $40-75 billion and may rise. Unfortunately, this disaster will impact multiple sectors in the insurance market. Rates are expected to significantly rise for the next 2-3 years. Below are average of the estimated losses and how they affect the various sectors of insurance:

	Property and vehicle physical damage	$13 billion
	Business Interruption	$12 billion
	Workers' Compensation	$3 billion
	Aircraft	$1 billion
	Liability	$12 billion
	Event Cancellation & Misc.	$1 billion
	Life and Personal Accident	$9 billion
	Total:	$51 billion

The above total represents 20-30 percent of current worldwide surplus (surplus = assets less claims and reserves for future claims) of the property and casualty insurance industry. There is now a real concern over solvency on the part of many insurers and their reinsurers. The sheer magnitude of the WTC loss along with the impact of a weak financial market will negatively impact worldwide surplus and insurance capacity. In the short term some markets will shut down for new business. Almost all markets will cautiously underwrite renewals. Non-renewals for both losses and underwriting reasons will increase. Anticipated increases are shown below and these should be considered conservative estimates:

	Property	50-100%
	Work Comp	10-20%
	Aviation	100-1000%
	Casualty/Liability	50%

There are a few things you can do as an insurance customer:

1. Plan ahead and budget for insurance increases.
2. Control your losses (accounts that make a profit are treated more favorably).
3. Make certain that your insurer understands who you are and what you do. If an underwriter understands your account and believes you are "better than the average" in your class, you may get preferential treatment.
4. Opt for stability - most renewal terms are better than what you'd find if you go out into the market as a new account.
5. Don't blame yourself or the insurance agents/brokers. They are only the messengers.