Canadian Underwriter

European airliners create terrorism loss fund

April 30, 2002   by Canadian Underwriter

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The Association of European Airlines (AEA) has established a terrorism insurance scheme called "Eurotime" which is expected to replace current temporary government backstop facilities for this particular peril. Airliners from around the world have been operating mostly with the insurance support of their respective national governments since the September 11 terrorist attacks as traditional insurers have demanded hefty rate adjustments on renewed cover for terrorism risks.
The AEA says the new "self insurance scheme" will eventually fit into a "multilateral solution" under the umbrella of the International Civil Aviation Organization (ICAO). The AEA’s president notes, "we call on ministers of finance and transport to support this European response, where industry, insurers and governments work together to provide a coherent, non-discriminatory and equitable solution to a problem which is not of our own making".

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