Brian O'Hara, XL Capital CEO:

Our prayers and thoughts are especially with our extended business family at this time. (And) while our faith in mankind may have been temporarily challenged, our belief in the power of the human spirit has only been fortified. We saw that power in the tireless and heroic rescue efforts at the World Trade Center and at the Pentagon; the outpouring of global support; and the resolve of the people around the world to overcome this adversity.

"I also witnessed that same strength at XL as our people showed commitment and focus to the company despite the business and emotional challenges of the past year."

"Needless to say, the terrorist attack on the United States has forever changed our industry and our world. With severely reduced capacity, dramatically changed perceptions of risk, and an increasing demand for risk transfer, there has been a tremendous flight to quality characterised by heavy demand for insurance protection by companies with the strongest financial ratings and a "blue-chip" reputation, such as XL.

"After all, we were formed to handle high-severity, low-frequency catastrophic losses."

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An XL spokeswoman said yesterday that the company, with offices across the globe, would observe a moment of silence at 8:45am Eastern Standard Time (9:45 in Bermuda) out of respect for those who lost their lives on September 11, 2001.

The company's office buildings will also fly flags at half mast today and managers throughout the group have been encouraged to honour requests from staff for time off to attend memorial services.

Brian Duperreault, ACE CEO:

We lost a lot of friends in the tragedy. Two of the largest insurance brokers - March and Aon - lost hundreds of their workers. These were our friends and associates.

"One cannot describe the effect it has had. But I am not nervous (as the anniversary approaches), instead it is a time of reflection rather than fear.

"In terms of as an insurance person, I have never seen such profound change and the way we look at risk has profoundly changed.

"...365 days ago, the pace of change in our world, our society, our economy and our community accelerated to light speed. We could almost see the hands of time moving as we responded to new challenges, new situations and new concepts of reality. In the aftermath of 9/11, Bermuda's sympathy for and support of the victims of September (11) was immediate, with many residents personally donating thousands of dollars to aid the families left bereft by the attacks. Tragically like the rest of the world, Bermuda shared in America's grief when two of its innocent young people died in the tragedy."

"Longer term, Bermuda became the focal point by facilitating the establishment of new insurance and reinsurance companies who infected capital and provided capacity at a time when the world needed it most.

"...No one living today will ever forget 9/11. It was a seminal lifetime event that is permanently engraved in our collective consciousness. If we can't forget it, then we must overcome it."

John Weale, IPC Re chief financial officer:

September 11, 2001 was a day that changed the world, and how we perceive many aspects of it. This is especially true of the insurance and reinsurance industry. First and foremost was the human loss - it should never be forgotten that something in the region of 17 percent or more of the victims of the attack on the World Trade Center, worked in the insurance business, including one of the two Bermudians who were lost in the tragedy. It is unlikely that anyone who has worked in this business for a reasonable period of time, did not know someone who perished.

"Then there is the financial loss. Official estimates of the loss to the insurance industry range from $30 billion to $50 billion. The true cost to the industry will take years, if not, decades, to determine. Some people estimate that the loss will be closer to $75 billion by the time everything has been paid. It is almost impossible to estimate the extent of liability claims that relate to the tragedy.

"It is noticeable that many families of the victims of 9/11 have not claimed for government assistance because of the restraints it would place upon them with respect to seeking other legal redress.

"All of this has caused insurance and reinsurance companies to completely re-think their approach to risk management and risk assessment. No company realised the extent to which it may face claims from so many lines of business, all arising from a single event.

"Previously, one of the worst-case scenarios was considered to be a major earthquake in California, occurring right at the time of a shift-change, which would produce significant losses for life, property and workers' compensation.

"In addition, the location of property risks has taken on much more significance. Insuring a portfolio of small retail businesses (e.g. delis, shops, shoe repairers) in a city would not previously be considered a real accumulation risk.

"However, if those businesses happen to be within a block of a major "trophy" building, or other potential terrorist target, an insurer or reinsurer has to assess the risk somewhat differently.

"In addition to the tragedy of 9/11, in the past year the insurance/reinsurance industry has also been hit by the corporate scandals of Enron, Worldcom etc. as well as the general decline in the stock market.

"These events have hurt insurance and reinsurance companies because of claims or potential claims to writers of Surety, Directors & Officers liability, and Errors & Omissions coverage, or losses in their investment portfolios.

"When taken all together, the events of the last 12 months has caused a great deal of uncertainty and disarray within the insurance industry. Once again, the financial strength of companies has taken on great significance, with respect to how much business their clients are willing to do with them. This is resulting in a greater degree of polarisation, with the weak getting weaker, and the strong getting stronger."