Insurer seeks to reduce exposure to aviation terror risk
Allianz Marine and Aviation is set to withdraw terrorism cover for airlines.
The insurer was unavailable for comment as Insurance Times went to press, but sources said it was "yet to make a final decision" whether to cover aviation terrorism risks in the future.
The company is the latest insurer looking to scale down its exposure to aviation terrorism risks.
Lloyd's aviation underwriters are considering introducing a clause that excludes biological and chemical risks from hull and liability coverage. The clause has been distributed to brokers and regulators for consultation.
Lloyd's Market Association chief executive Simon Sperryn said: "The risks facing airlines have changed hugely and underwriters have to keep up and manage their exposure."
Sperryn added that the new clause would be offered to aviation insurers in Lloyd's, but they would not be obliged to take up the wording.
In July of this year, aviation insurance groups announced that future cover would exclude terrorist threats.