Insurance professionals warned trucking companies that insurance rates will increase after Jan. 1, 2002, when reinsurance companies will have their first chance since the Sept. 11 attacks to increase premium rates charged to primary insurance partners. Reinsurance companies provide insurance coverage to spread out risk among primary insurers, and will shoulder most of the costs of the terrorist attacks. Most of the reinsurance contracts at the top level of the insurance industry expire every six months on Jan. 1 and July 1, according to Gregory Feary, an Indianapolis attorney who ran the meeting of an American Trucking Associations subcommittee dealing with insurance issues and trucking.

Originally posted on Fleet Financials