Insurance industry getting all wobbly on Iraq

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http://news.bbc.co.uk/2/hi/business/3627011.stm

Counting the rising cost of fear

Violence and kidnappings against foreigners in Iraq are starting to make war insurers sweat and look certain to inflate the cost of reconstruction.

Even before the April uprisings in central and southern Iraq, foreign contractors faced frequent bombings, drive-by shootings and banditry.

But it is 40 kidnappings in just over a week that has led foreign aid agencies and firms to pull out staff.

"The insurance market is starting to sit up a bit over all of this," says Colin Adams, chief executive of BCCB, a lobby group that counts many of the 35 UK firms in Iraq among its members.

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[aquart]

1. Looks like an effective way to fight.