- The Washington Times - Tuesday, October 30, 2001

LONDON (AP) A trade group for members of the Lloyd's of London insurance market aroused criticism yesterday for describing last month's terrorist attacks as a "historic opportunity" to make money.
Since the Sept. 11 attacks on the United States, premiums for disaster insurance have "shot up to a level where very large profits are possible," the Association of Lloyd's Members said in a newsletter to the individuals, or names, who help underwrite the market.
Rates had risen by an average of 40 percent since the attacks, and the group said it had taken measures to help members "take maximum advantage" of the improved conditions.
"The combination of a strongly improving market before the terrorist attacks and the massive increases after mean that Lloyd's is currently enjoying one of the strongest markets in living memory," the newsletter said.
Aviation insurance premiums, for example, have surged by between 400 percent and 600 percent since Sept. 11, while rates for aviation war policies have ballooned by 1,400 percent, it said.
Even business segments not directly affected by the attacks, such as car insurance in Britain, have seen premiums increase.
"Names may now have a historic opportunity for profitable underwriting," the association said.
Vincent Cable, Trade and Industry spokesman for Britain's opposition Liberal Democrat Party, described the report as unseemly.
"Boasting about profits seems rather distasteful. I was baffled and thought it was insensitive," he said.
Norman Baker, a Liberal Democrat lawmaker, agreed.
"I think it's very distasteful … to [focus] on the opportunity for increased profit as a result of a tragedy for a large number of people."
The Association of Lloyd's Members refused to comment on the newsletter.
Lloyd's spokesman Adrian Beeby noted that the letter had not been issued by the market itself.

Copyright © 2018 The Washington Times, LLC. Click here for reprint permission.

The Washington Times Comment Policy

The Washington Times welcomes your comments on Spot.im, our third-party provider. Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide