Insurance giant AIG has emerged as the primary insurer in a substantial $130 million “all-risks” policy covering a Japan Airlines aircraft involved in a collision at Tokyo's Haneda airport, according to information sourced by Reuters from industry insiders.
While AIG opted not to provide a statement on the matter, details indicate that the insurance policy primarily focuses on hull damage. This coverage was put to the test following the incident at Haneda airport, where a Japan Airlines Airbus A350 collided with a De Havilland Dash-8 Coast Guard turboprop. The collision resulted in the deaths of five out of six crew members on the smaller aircraft, although all 379 passengers on the Japan Airlines plane were safely evacuated.
This news, Reuters noted, also highlights the complexity of large-scale commercial insurance arrangements, which often involve the distribution of risk and coverage across multiple insurers.
The aviation insurance market has faced considerable challenges in the past year, exacerbated by global events such as the conflicts in Ukraine and Israel-Gaza. A recent report by Gallagher reflects these challenges, noting a significant impact on the sector.
Moreover, the aviation reinsurance market saw a notable increase in rates, with hikes up to 25% at the key Jan. 1, 2024 reinsurance renewal date. This was confirmed in a recent report from Gallagher's reinsurance division, underscoring the changing dynamics and heightened risks in the aviation insurance and reinsurance markets.
What are your thoughts on this story? Please feel free to share your comments below.
