Airline War Risk Insurance Premiums To Sky Rocket
Airlines face a tripling of war-risk insurance premiums after recent events, including the shooting down of MH17 in Ukraine.
The loss of two Malaysia Airlines Boeing 777s in two separate incidents this year is part of a trend that is expected to see both war risk and hull loss insurance premiums increase when policies are renewed later this year. Photo: Flickr: Creative Commons (BY-SA) by Aero Icarus
The loss of two Malaysia Airlines Boeing 777s in two separate incidents this year is part of a trend that is expected to see both war risk and hull loss insurance premiums increase when policies are renewed later this year. Photo: Flickr: Creative Commons (BY-SA) by Aero Icarus

In the wake of recent airliner losses, carriers are bracing for substantial increases in insurance premiums when the main renewals season starts on November 1. Insurers have already made massive payouts for hull losses following the disappearance of Malaysia Airlines flight MH370 en route to Beijing and the apparent shooting down of MH17 over eastern Ukraine. Other recent losses have included the crash of Air Algerie’s flight AH5017 in southern Mali and TransAsia Airways flight GE222 in Taiwan. Further unsettling the risk environment for air transport have been recent attacks on airports in Pakistan, Israel, Afghanistan and Libya.