Insurers expected to raise war risk premiums after MH17 and conflicts in Israel and Libya

Insurers are expected to increase war risk premiums for airlines, following recent losses due to conflicts in Israel and Libya, and the MH17 disaster. The insurance settlement of the MH17 in particular, is expected to be complex and lengthy as the claims would be for both the hull loss and passenger liability. Lloyd’s Syndicate 609, which is managed by Atrium Underwriters Ltd, has confirmed that it is the leader of the hull war policy for Malaysia Airlines. War risk hull is used in shipping and aviation industries to cover damages and is calculated based on the value of the craft.