Thirty insurers will share the financial burden of the crash
Allianz has estimated insurers will pay $300 million in claims and costs stemming from the crash of a Germanwings Airbus A320 in the French Alps last week, according to insurance sources.
According to insurance sources, 30 insurers will share the financial cost of the crash, which was believed to have been deliberately caused by the plane’s co-pilot.
The estimate includes the loss of the aircraft, at about $6.5 million, the recovery efforts, legal fees and indemnification of the passengers’ families.
Liability claims by the families of the 144 passengers are expected to account for the most of the costs.
Lufthansa said on Friday it was offering to pay up to €50,000 ($54,115) in immediate financial assistance per passenger.
Underwriting data on co-insurers’ shares of eventual losses, supplied by an insurance industry source, showed Allianz with a 10% share, American International Group with 11% and Swiss Re with 7%, Reuters reports
Allianz, which has said it is the lead insurer, declined to comment, as did AIG. Swiss Re declined to comment on the case but said both Germanwings and its parent Lufthansa were among its clients.
Rating agency AM Best has said the Germanwings losses would also be absorbed by the Lloyd’s market.