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Higher Insurance Rates Charged to Airlines Flying to Middle East
Daily Policy Digest

Terrorism Issues / Terrorism

Monday, March 24, 2003
Insurers in London have begun charging extra for war insurance on commercial airline and charter flights into parts of the Middle East, brokers report.

  • The additional costs would be higher for carriers flying into countries bordering Iraq -- Kuwait, Saudi Arabia, Jordan, Syria, Turkey and Iran.
  • There are few details on pricing levels, but the surcharge on one evacuation flight out of Kuwait yesterday was $100 per passenger in addition to the usual premium paid on the airplane annually.
  • Brokers and insurers said flights into and out of the United Arab Emirates -- which is roughly 600 miles from Iraq --as well as other Gulf states, were almost certainly going to have to pay extra for coverage.
Insurers are said to be wary of creating too large a financial shock, fearing that carriers will be forced to seek insurance from governments or create their own nonprofit insurance companies.

Source: Joseph R. Treaster, "Extra Rates Are Charged for Flights to Mideast," New York Times, March 21, 2003.

For text
http://www.nytimes.com/2003/03/20/international/worldspecial/20INSU.html

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http://www.ncpa.org/iss/ter/
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