fly. Estimates of the cost of the damage in New York have risen sharply, although the scale of the losses for individual insurance companies will be unclear for some time. There was a concern that falling equity prices might trigger an automatic sale by insurance companies of their shareholdings in order to meet the Financial Services Authority (FSA) solvency rules, thereby exacerbating market trends.” Some of these problems have impacted some of the largest insurance markets. For instance, Guardian Unlimited reports, “ As it released its first estimate of the size of claims it expects to receive, Lloyd’s, which insures buildings, planes and even film stars, moved to make speculation that it would collapse from the financial burden of paying out claims of 1.3 billion dollars. Lloyd’s predicted that terrorism would lead to sweeping changes through the insurance world. The cost of insurance will rise dramatically because of the perception that the world is now a riskier place while some of the while some of the syndicates which underwrite the insurance policies will stop taking on any new business.” Because of the terrorist acts, the whole insurance landscape has changed.The WTC attacks have increased the spending of defense buildup. The defense department has been spending a lot of money to create more weapons for war. Gary Gentile, a Business Writer writes “Unlike previous conflicts, which relied heavily tanks, fighter jets and ships, a prolonged campaign against terrorists will place increased emphasis on an electronic battlefield that will require sensors and software. The Senate is considering a request for $343 billion for Defense and Energy department needs. The spending bill already has passed the House after legislators there diverted some money President Bush wanted for his missile-defense program to counter terrorism efforts. The Defense Department's research arm also is working on ...
