The war between Israel and Hamas forces could have a knock-on impact on airline operations. According to a report posted on the Reuters website today (Oct. 19), industry sources “with direct knowledge of the matter” said aviation “war insurers” have given notice they could cancel coverage for certain airlines based in Israel and Lebanon. Normal insurance strategies for airlines include both “all risks” policies for risk of regular hull damage and passenger liability—and a “war policy” to guard against war- or terrorist-related losses.
According to contract terms, Reuters wrote, insurers based in Europe, the U.S., and the Lloyds of London markets have the right to issue a seven-day notice of cancellation—or other changes to terms and conditions should a major conflict bring greater risk than the companies are willing to assume.
Bruce Carman, chief underwriting officer at Hive Underwriters, told Reuters, “War underwriters’ appetite for continuing to cover these risks for no additional reward differs, and some are now looking to withdraw cover[age], especially given the news the Israeli government has provided a backstop to cover flights.”
According to the Reuters report, the Israeli Parliament’s finance committee has approved a government guarantee of up to $6 billion to cover insurance for war risks for Israeli airlines.
Let’s see if I understand this…
An airline that operates in a part of the world that goes to war with a certain regularity takes the initiative to buy war insurance.
The insurance company issues a policy and collects an agreed-upon premium.
Then, when a war begins, the insurance company can suspend or terminate the policy on seven day’s notice? I hope the premiums were mild.
It’s like your auto or homeowner’s policy David. Read all the limitations and exclusions and you wonder what is really covered. But the rates continue to climb.
Does make you wonder why the policies were bought in the first place. Especially have to wonder given most airlines in those areas are really government owned. So, who’s uncle is collecting the premiums?
The Insurance business coin toss, heads I win, tails you lose….
Insurance is government sanctioned extorsion, the government makes rules such that you must buy in to the insurance racket to operate .like car insurance you are required to have liability coverage, dont pay the bill or change companies and your provider will report you to the state , you must get and prove you have the policy required or the state suspends you registration. Your rate is never kower because everyone must be insured and you still pay for uninsured motorist coverage! reeks of some underhanded b.s.! oh if you use said insurance they will raise your rates until the amount they paid out (plus interest and costs) has been recooped, your pokicy is really just a contract for a LOAN in case of auto related events, you must pay for this service each month even if you dont need it! And using it may get you cancled by the company you are provided for by! Face it insurance is a con game, a shakrdown, extorsion and any other person or buisness trying these tactics would be prosecuted for it.
Insurance is government sanctioned extorsion, the government makes rules such that you must buy in to the insurance racket to operate .like car insurance you are required to have liability coverage, dont pay the bill or change companies and your provider will report you to the state , you must get and prove you have the policy required or the state suspends you registration. Your rate is never lower because everyone must be insured and you still pay for uninsured motorist coverage! reeks of some underhanded b.s.! oh if you use said insurance they will raise your rates until the amount they paid out (plus interest and costs) has been recooped, your policy is really just a contract for a LOAN in case of auto related events, you must pay for this service each month even if you dont need it! And using it may get you cancled by the company you are provided for by! Face it insurance is a con game, a shakrdown, extorsion and any other person or buisness trying these tactics would be prosecuted for it.