Aviation insurers have announced future cover would exclude terrorist threats. Insurers have circulated drafts of the proposed restrictions to be applied as policies come up for renewal at the end of the year.

The move means the onus will fall on the airline industry to provide for threats such as chemical and biological weapons.

Global Aviation Insurance Network managing director John Lumley said: "Since September 11 the market has always sought to redefine the clauses to exclude terror cover as the insurance market knows it wouldn't survive another attack."

The European Commission said experts from European Union countries would convene next week in Brussels to discuss what solutions it would offer to the industry.