911 and Its Global Effect

Paper Summary:

The papers discusses the effect of the 9/11 attacks on the economy, both in the U.S.A and elsewhere. It begins by examining the impact on the aviation industry before moving on to the tourism industry. The paper also looks at the insurance and reinsurance companies, as well as investment banks.

From the Paper:

"Some analysts believe that this "hard market" will last until 2005, but I believe that by the end of that year, and if no major catastrophes occur, premium prices will start to decrease. What insurers and reinsurers are doing now is hiding their profits by strengthening their reserves; they are bound to do that in order to keep the rates high. The question now is for how long can they maintain this scheme? Analysts say that there is still a tremendous capacity for insurers out there because of the capacity that was lost after the attacks. Yet, this capacity was returned just a few months after the attacks when six new Bermuda companies entered the market. (Loomis 2002)."

More papers on 911 and Its Global Effect:

• Research Paper # 7116 : "Global Terrorism"
• Analytical Essay # 8230 : "The Impact of 9/11 on Globalization"
• Essay # 9498 : "Globalization"

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