US terrorism legislation has eroded a large chunk of the market for airline hull insurance, according to hull underwriter Limit Underwriters.
The underwriter was reported to have said that the legislation, introduced after the 11 September 2001 terrorist attacks, has enabled US airlines to obtain cheap hull cover.
Speaking to the 2003 Rendezvous of the International Air Transport Association (IATA) Roberts said the low levels of premiums needed to be boosted by high current hull rates. He said the current surcharge, of 0.5% average hull value, was required to restore rates to profitable levels.
Limit Underwriters' Angus Roberts said: "More than 30% of our income has been lost as a result. We are down at precariously low levels of overall premiums."
