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Member, Beacon International Group, Ltd.
The terrorist attacks of Sept. 11, 2001, have prompted more than half of the insurers operating in the London market to modify the business they write, according to a survey by PricewaterhouseCoopers.
PwC, which surveyed 41 insurers in the Lloyd's of London and London company markets, found that 54% said the terrorist attacks had directly led them to change the lines of business in which they operate.
Sixty-four percent of Lloyd's companies said the attacks had prompted a change in their business mix, while 37% of company market insurers noted a limited change.
Many respondents cited U.S. casualty business as one line from which they are withdrawing, PwC said. In addition, many are considering scaling back underwriting of aviation, U.S. property and professional indemnity coverages.
Almost 80% of respondents said rates had increased by more than 20% on average since last year. Sixty-four percent of insurers estimated rate increases at between 20% and 50%, and 14% reported hikes of 50% or more.