Allianz AG to Insure Airline Liabilities
By Robert Warne - April 25, 2002Liability insurance options are once again opening up to airlines.
Allianz AG Holding announced April 25 that it plans to offer insurance against third-party liability for airlines in the case of acts of war and terrorism. Along with a number of international partners, Allianz has come up with a plan to insure airlines following the mass cancellation of liability policies airlines experienced after Sept. 11.
According to the Dow Jones Newswire, Board Member Detlev Bremkamp in a statement said, “This way, Allianz can meet growing demand among aviation customers who require insurance solutions in the case of third-party liability through war and terror.”
The aviation insurance policies will be part of a large framework contract and cover planes up to $1 billion and airlines up to $2 billion. The framework contract would cover the airlines for up to four large claims generating cases.
Governments have been covering airlines in the interim. U.S. airlines received a 60-day extension of government-sponsored war and terrorism risk insurance March 20. This bought airlines more time to set up their own self-insurance company.
The Air Transport Assn. and the U.S. Department of Transportation with the help of broker Marsh & McLennan Cos. Inc. formed the insurance company, named Equitime, in March.
With some similarities to Allianz’s plan, Equitime will provide liability coverage of $1.5 billion per incident and its premiums will be based on the number of passengers. | 
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