Cost of reinsurance jumps 15% following September 11 terrorist attacks

The cost of reinsurance in Poland has risen 15% year-on-year due to changes in reinsurance companies' policies after the attack on the World Trade Center, informed Marek Czerski of Swiss Re Advisers Polska. This is not yet a catastrophe for Polish insurance companies, but their income this year is expected to be lower. Krzysztof Jarmuszczak, Chairman of the Polish Reinsurance Company (PTR), expects further changes: "The cost of some insurance will go up, and insurers are now able to guarantee less to their clients." Jarmuszczak also said that this year insurers would rather suffer from lower income than risk losing clients. The international reinsurance market lost $100 billion of its value in the last year, including losses of $35 billion to $60 billion since September 11. (Puls Biznesu, p. 8) A.D.