Risk Management

Insurers Link Up to Provide Aviation War-Risk Coverage

Insurance keeps several non-U.S. carriers flying, AIG says.
CFO.com StaffOctober 4, 2001

American International Group and at least 15 other insurers are linking up to provide aviation-war-risk and hijacking liability coverage totaling $1 billion per airline. The coverage kicks in above $50 million in primary coverage available in the aviation-insurance market, according to an AIG release.

The coverage covers the first $150 million in losses above the $50 million in primary coverage and up to $850 million in excess of that $150 million. AIG’s coinsurers at the $850 million level include: Ace, Axa, Chubb, Everest Re, GE Frankona, Glencoe, Hannover Re, Kemper, Liberty Mutual, St. Paul Group, Tokio Marine, TransReCo, Travelers, XL, and Zurich Re.

The insurers have supplied coverage for several non-U.S. airlines, permitting them to operate with uninterrupted service, according to AIG.