France’s AXA and Britain’s Royal & Sun Alliance both announced that there would be large increases in their premium rates on commercial property coverage in the aftermath of the terrorist attacks on the U.S.
AXA’s Corporate Solutions Division indicated that raises of up to 80 percent could be expected on commercial property, and around 35 percent on liability insurance. The rates had been expected to rise in any event, but the extent of the disasters has put new pressure on the company take account of the increased risks and the amounts involved.
RSA also indicated that some commercial rates would substantially increase, but said it intended to apply them only in specially high risk areas. It also plans to raise homeowners rates, but by a lesser amount, mainly due to increased risks from floods and the rise in the number of personal accident claims.
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