The "war" market will be more heavily affected than the aviation market by the events in the US, a senior aviation broker has warned.
The broker said most of the world's war risks, which include hi-jacking and terrorism cover, were underwritten at Lloyd's, which will be hit heavily unless the US government underwrites the damages.
"However, the liabillty will come under normal airline policies," he said.
"They'll be spread around, a portion in London but the rest around the world aviation markets."
The broker said rates could rise in the aviation markets following the disaster.
"Confidence in airlines will be affected by the breach in security, so it's likely to have a significant effect," he said.
