Insurers will maintain cover to airlines flying to and from the Middle East even if war in Iraq occurs. That's according to Peter Butler, chairman of the Aviation Insurance Offices Association (AIOA).
The AIOA claimed that airlines should now not face a repeat of the insurance crisis triggered by the 11 September attacks in the US.
Butler said: "I think insurers will be trying hard not to cancel coverage completely and therefore there should not be a case for government intervention."
Butler said insurers were likely to limit coverage for flights to the region and instead charge special premiums to cover airliners flying in the Gulf region.
Ken Coombes, senior vice president for aersospace insurance with broking giant Marsh said: "We don't see the insurance market withdrawing cover.
"Because that's when they make the most money. It's a high risk but high return business."
