Sanders wtc

GIRO XXIX2002 Convention: 

abcd GIRO XXIX 2002 Convention 8-11 October 2002 Disneyland® Resort Paris

World Trade CenterAn Update : 

World Trade Center An Update David Sanders

Last Years summary and Update: 

Last Years summary and Update

Sept. 11 Industry Loss Estimates $bn: 

Sept. 11 Industry Loss Estimates $bn Insured Losses Estimate: $40.2B Source: Insurance Information Institute, July 2002

Broad Overview: 

Broad Overview Insurance business has been very resilient Current losses less than Hurricane Andrew WTC DISASTER CLAIMS FILED 09/04/2002 Commercial 22,154 Personal 11,098 Total: 33,252 CLAIMS VALUE $17.3 billion Source: Disaster Insurance Information Office (DIIO)

Market Lossessource Aon: 

Market Losses source Aon

Market Losses: 

Market Losses Only $30 bn plus Liability $10bn plus Uninsured $9bn equals $49 bn

Uncollectable Insurance: 

Uncollectable Insurance FEMA Victims Compensation Fund Aon’s $90 million reserve Silverstein case

FEMA information: 

FEMA information Aid to Individuals and Families $ 255,106,592 Direct Emergency Assistance from FEMA (US&R & Mission Assignments) $ 297,711,792 Aid to Government and Non-Profits. $ 4,490,764,717 Total      $ 5,043,583,101 Projected $9 billion

FEMA information: 

FEMA information Clean up costs Debris removal $437m Landfill & debris disposal $ 90 m Associated Costs $ 96m Overtime Police $295 m Fire $106 m PONY $ 29 m TOTAL $1053m

Original Estimate: 

Original Estimate Clean up estimated at $7bn “Cleaning up the estimated 1.2 million tons of rubble left by the destruction of the World Trade Center could take up to a year and cost $7 billion, officials said Friday.” Sen. Hillary Rodham Clinton estimated that cleanup costs are running $100 million a week. Senate aides put the eventual cleanup cost at $7 billion.

Final Estimate: 

Final Estimate Workers finished three months ahead of what city officials originally estimated, and the project cost about $750 million — approximately one-tenth of the initial $7 billion projected estimate — to clean up remains of the two 110-story buildings and surrounding area

Claim Surge: 

Claim Surge One year statute of limitation against PONY Surge in writs defending positions These will remain dormant while compensation sought under Victims Compensation Fund (due to court ruling) Dec 21 2003 for latter Claims state that Port Authority, the World Trade Center’s owner, did not operate the complex in a safe and proper manner and specifically failed to provide for proper fire protection, emergency response and evacuation

Swiss Re v Silverstein: 

Swiss Re v Silverstein Two trials - November 4 to decide contractual issues mid March to decide how much but now deferred following Silverstein appeal Silverstein asking for $8.2bn aginst insurers $2.4 bn Wide apart - rumours of 1.6 loss being spoken about!

Swiss Re v Silverstein: 

Swiss Re v Silverstein Some insurers settled with Silverstein on 1 loss basis Willis must testify& release details of E&O contract Silverstein says Travelers Form is binding and is silent on losses Swiss Re claim bound by WilProp form with only 1 loss

Swiss Re v Silverstein: 

Swiss Re v Silverstein St Paul, Hartford & RSA settled under WilProp - but Silverstein appealing Does PONY wrap around the BI in respect of Silverstein coverage?

Aviation Losses: 

Aviation Losses Serious issues over number of aviation losses Claims of 4 losses - 2 reinsurance recoveries Resulting data is subject to serious scrutiny Market meeting with lawyers 11th October

Aviation Losses - Kuwait: 

Aviation Losses - Kuwait Unity approach unity of intent unity of time unity of cause unity of location. Possibly useful in events aggregation issues for WTC

Jurisdiction Issues: 

Jurisdiction Issues Air Transportation Safety and System Stabilisation Act section 408(b)(1) creates a federal and exclusive cause of action "for damages arising out of the hijacking and subsequent crashes ... on September 11, 2002".

Jurisdiction: 

Jurisdiction Section 408(b)(3) grants the US District Court for the Southern District of New York "original and exclusive jurisdiction over all actions brought for any claim (including any claim for loss of property, personal injury, or death) resulting from or relating to the terrorist-related aircraft crashes of September 11, 2001".

Jurisdiction: 

Jurisdiction Canada Life decision Although the Act’s jurisdictional provisions may apply broadly to actions filed by the individual victims, its scope did not apply to international reinsurance disputes

Jurisdiction: 

Jurisdiction Events cancellation - how remote from events! “The court concluded that the dispute was "too remote" from the terrorist attacks to come within section 408(b)(3), the antique shows had been cancelled because of the government restrictions on the use of the intended venue, and were to be held "almost six miles from the World Trade Center, and to begin 13 and 32 days respectively after September 11".” Travel insurance - while in lifts!

Fema Report: 

Fema Report

Finally: 

Finally Geneva Association concluded clear shift in understanding and managing risk importance for modern financial economics of the insurance industry that Insurance Industry was very resilient A total of $44.5bn in capital has been raised by p/c insurers since September 11, 2001 (Morgan Stanley)