AIG To Offer War, Hijack Coverage to Airlines
Wednesday, September 26th, 2001 Catastrophe Risk ManagementAmerican International Group announced its intention to offer coverage to airlines for war and hijacking (terrorist) risks through its member companies with total limits up to $1 billion. The decision comes in response to the severe economic disruption in the airline industry, not only in the U.S., but also in most other countries as a result of the abrupt cancellation of war and terrorist risk coverage. (See IJ Website Sept. 20), and subsequent moves by the governments of most countries, including the U.S., to guarantee sufficient funds to assure that coverage is provided in the short term. (See IJ Website, Sept. 24). The U.S., which was the hardest it by the tragedy, has committed to assure coverage for the next 6 months. Other countries have agreed to cover premium raises for shorter periods.
