The global insurance system has the financial strength to handle the losses from yesterday’s terrorist attacks, according to the Insurance Information Institute.

Insurance losses from the attacks will be shared throughout the worldwide insurance and reinsurance system and not be borne by any single company, according to the III.

Insurance coverage on such large risks as the World Trade Center and airlines traditionally are insured by a number of insurance companies, which, in turn, share their portion of the risk with reinsurance companies, explained Dr. Robert Hartwig, III’s vice president and chief economist.

“The global insurance and reinsurance industry has the financial structure and strength to absorb a catastrophic loss such as occurred yesterday,” Hartwig said.

Estimates of insured losses have topped US$30 billion, but it will be some time before an accurate assessment of the total impact can be made. Hartwig said that it was too early to tell what impact the disaster may have on commercial property and liability insurance rates, which have been rising during the past year. “Insurance and reinsurance companies will be taking a close look at the impact of the terrorist attacks on the risks they insure,” he said.