Premiums soar after terror attacks

By THIS IS MONEY
Updated:

 

INSURANCE giants Royal & Sun Alliance and Axa have warned that premiums on some commercial property policies could rise by up to 80% following last month's terrorist attacks in the US.

RSA, the UK's second largest property and casualty insurer, said premiums would also rise for personal property and casualty insurance, though by a smaller amount. These increases were driven more by last year's floods and higher levels of personal accident claims, rather than as a direct results of events in the US, a spokesman said.

Paris-based Axa said its Corporate Solutions subsidiary planned to raise the cost of commercial property cover by about 80%, while liability insurance was set to soar by up to 35%. The steep rises were due to higher reinsurance costs faced by the group following the US disaster, said a spokeswoman.

But she added that it had intended to increase premiums by up to 40% before 11 September, to restore the balance between premiums and costs after years of falling rates but increased levels of claims.

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