Allianz war cover

German insurer Allianz has set up a facility to cover aviation terrorism and war risk third-party legal liability in advance of the expected withdrawal later this month of support provided by national governments. The new cover offered by Allianz and its partners, as yet unidentified, will provide cover of up to US$1bn per aircraft, subject to a maximum of $2bn per airline per year. The policy also operates within a ‘master scheme’ which takes into account the experience of the entire aviation industry so that the underwriters are not exposed to huge losses from several incidents. If there are four events resulting in losses to the master scheme, cover will terminate immediately. Allianz will not be able to terminate the cover for any other reason.