New Jersey Principal Cynthia Borrelli was quoted in a Law360 article titled Russia War's Indirect Exposures Loom Over Insurers, authored by Shawn Rice.
Cynthia mentioned that the current situation is not so different from what the insurance industry saw after the 9/11 attacks, stating that the focus is on the potential volume of claims that could be triggered under U.S. insurance policies and the impact on the U.S. and international reinsurance markets.
She stated, "[i]f the reinsurance markets are hit by a high volume of claims, will reinsurers be able to answer claims from their ceding companies who themselves may have an enhanced volume of claims? ... There was a real impact [from Sept. 11] on the reinsurers and their ability to pay claims as well as financial viability."
Further into the article, Cynthia goes on to say that an attack on insurers could affect their ability to access reserves to pay claims under policies of insurance or reinsurance. She stated, "[o]n the top of every state insurance regulator's mind is insurance insolvency concerns." She then followed with, "[t]heir goal is to protect the consumer. The best way to protect consumers is to ensure the solvency of the carrier issuing policies that insure consumers."