US airlines are expected to create a mutual insurance company to cover war and terrorism risks.
It is believed 70 airlines will participate in the scheme, called Equitime, that will offer first and third party war risks cover up to $1.5bn (£1.1m).
Like many governments, the US government has a temporary cover scheme in place following the WTC attacks. It is due to run out on 20 March but is expected to extend its cover until Equitime starts operating in May.
The US market is the world's largest so Equitime will remove the single biggest source of premiums from the commercial insurance market.
Non-US airlines are likely to be unhappy about the scheme as it could create greater costs for them as annual premiums rise.
The UK government is unwilling to extend its own temporary cover scheme and instead is urging airlines to buy commercial cover. Airlines are unhappy at this proposal as they believe it would mean getting less cover for twice the price.
The UK's preference for a commercial solution is an obstacle to European airlines creating a scheme similar to Equitime.
