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Economic loss almost too much to bear CD

By WIIUAM SHERMAN and BRIAN KATES rest of the metropolitan region, accord­ Compensation Insurance Rating Board. HMIV NIWS SrAFFWntTERS ing to Robert Hartwig, chief economist of And the human suffering extends well 'The immediate toll of terror on New York’s economy approach- the Insurance Information Institute. beyond adult wage earners: The Board of “Multiply that by the number of Education envisions spending $110 mil­ es a staggering $60 billion, with shock waves felt from 'Wall Street deaths, and this is a tremendous loss of lion — $100 a child — foi' disaster-related giants to the smallest mom-and-pop store. human capital and intellectual output," counseling. The board also has asked for In years to come, the devastation could be measured in the trillions. Hartwig said. “Many of those killed were an additional $100 million to hold extra The insurance industrj' has set the which also had plummeted, bounced highly educated, highly compensated and sessions to make up class time lost to dis­ lolal loss in the city at $40 billion to $60 back more than 20% off its low. extremely productive.’’ ruption. billion, the equivalent of the annual gross But 32 Nasdaq member companies Although the city’s trial lawyers have It will take years for the city to rebuild. domestic product of Hungarj'. had offices in the twin towers. agreed to hold off tor now, suivivors of Insurance payouts are expected to total Since Sept. 11, trucks have hauled those who perished are expected to seek more than $5 billion in damages, accord­ 20% drop in area real estate more than $25 billion. Before that, the more than 130,000 tons of shattered con­ The World Trade Center attack wiped largest insurance payout ever was $19 bil­ crete and twisted steel from Ground Zero. ing to several of the city's top litigators. To gauge the impact of the suits, con­ out 15 million square feet of lower lion after Hurricane Andrew in 1992. Estimates run as high as $1 billion for the Manhattan real estate — about 20% of the And as New York reels, so does the total debris removal and cleanup, which sider this: Next of kin of the viclim.s of Pan American Flight 103, blown up by area’s total — of which only about 6 million nation. The city’s $500 billion annual could take up to a year to complete. square feet will be usable within a year, terrorists in 1988, received on average

iB gross product accounts for 5% of the But that is just bricks and mortal. according to experts at Jones Lang LaSalle, nation’s economic output. The cost in in blood and bone will be $18.3 million each, said Manhattan attor­ ney Lee Kreindler, who represented the one of the countrj'’s top real estate firms. UP THE Since the Sept. 11 attack, investors have watched the meltdown of their retirement accounts and other holdings felt for generations.

High insurance tab families of 104 passengeis in that case. About 108,000 New Yorkers will be left The worth of the World Trade Center buildings alone is estimated at $6 billion

KISSES in what amounted to near-panic selling lon Wall Street. Life insuiance payouts are expected to be unemployed — including 2,000 security guards, window cleaners and janitors to $8 billion, according to Bernie Bordeau, president of the New York State

MB; In the week after the attack, the Dow .Iones industrial average had its second- between $2 billion and $5 billion, according to the American Council of Life Insurers. who worked in the World Trade Center and surrounding buildings. About 7.5.000 Insurance Association. But that, of course, i.s just the beginning. “Property claims will be tremendous,”

WSi biggest weekly loss since 1915, with 29 of The federal government also will pay are expected to file for unemployment $151,635 to the families of each of the more insurance, according to Assistani 11..S. said Bernie Heinze, chief of the American the index’s 30 members falling. Stocks Association of Managing Agents. “In than 400 firefighters, emergency' medical Labor Secretary Emily DeRocco. declined all five days of the first week of addition to the incalculable loss of life. i liitltisfry technicians and police officei's who died in Federal officials say at least 700,000 of trading following the attack, eras­ how do you account for 220 floors of the catastrophe. The cost of replacing their the city’s 4 million jobs will be affected in ing a mind-boggling $1.38 tril­ office space in the twin towers with all experience is immeasurable. some way. lion in market value. the computers, valuable papers, and stor­ The loss of life will have a swift impact. The state already has secured $25 mil­ ' Since then, the market lion in federal aid to provide temporary age and backup systems? How do you has rebounded a bit. The average Manhattan worker jobs as part of the disaster relief. But thatpul a price lag on that?’' has an economic output ptosis of the The Dow Jones closed of $150,000 a year. will hardly meet the need. Workers’ com­ TowerGioup, a technology research Friday up 10% from its ' company, ha.s attempted to do just that " post-attack low. The compared with pensation costs alone are expected to top The group estimates it will cost $3.2 bil- hefrorJst ; NASDAQ composite. $116,000 in the $ 1.3 billion, according to the New York liQn iiisl tn rpnl«rp computer attack. Here I Total property and i|i Property insurance If Ground Zero cleanup y life Insurance [ Workers' I Expected survivor! I j Counseling city ,000 work casualty losses i|' payouts |i and security -i payouts i compensation ] lawsuits sclinolchildron jjsonid of IhSih is'wmrtn I 'Stin jttife to $60 billion 1 to $30 billion | to $5 billion M.r.wi.,. rtciouei l.?U(rt. bAILY NEWS - «—