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LIVE MOSAIC Town Hall (Archived): www.airborne-live.net

Fri, Aug 27, 2004

European Carriers Want Terrorism Insurance

And They Want Governments To Pay For It

Lufthansa and other European airlines want terrorism insurance. And they want their respective governments to pay for it.

The Financial Times Deutschland quotes Lufthansa's head of insurance, Rolf Oelssner, as saying without government-sponsored insurance, air travel in Europe could well grind to a halt.

Insurers on the Continent say they plan to exempt certain risks from coverage beginning next year. Among them are disasters resulting from chemical, biological or even atomic materials on aircraft or in airports where the intent is clearly hostile.

The world's biggest reinsurer, Munich Re, says it doesn't want to cover such instances because the risks are "impossible to calculate."

The bottom line: No insurance, no flights. But at this point, the Financial Times reports, EU officials are reluctant to get involved.

FMI: www.munichre.com/default_e.asp, http://cms.lufthansa.com

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