AVIATION war insurers have given notice to cancel cover for some airlines domiciled in Israel and Lebanon, with some cancellations already taking effect, Reuters reports.
Citing three industry sources, the news agency noted that insurers in Europe, the United States and the Lloyd's of London can issue a seven-day notices of cancellation or change terms in the event of a major conflict when they feel the risk is too great.
Insurers for Israeli flag carrier el Al Airlines Israir and Arkia have previously said they can issue such notices due to the war between Israel and Palestinian insurgents Hamas. Israeli airlines have now received the notices, two sources told Reuters, without naming the airlines.
'War underwriters' appetite for continuing to cover these risks for no additional reward differs and some are now looking to withdraw cover, especially given the news the Israeli government has provided a backstop to cover flights,' said Bruce Carman, chief underwriting officer at Hive Underwriters.
Israeli's parliamentary finance committee last week approved a plan to provide a state guarantee of US$6 billion to cover insurance against war risks to Israeli airlines.
El Al and Arkia said the government was providing all necessary coverage for them to continue operations safely.
Israir said it had not been served notice by its insurers, but did not provide additional details. Lebanon's Middle East Airlines declined comment.
Israeli carriers have continued to fly while most foreign airlines have cancelled flights to Tel Aviv, expanding flights to bring back those travelling abroad and those called up to reserve service for the military.
SeaNews Turkey
Citing three industry sources, the news agency noted that insurers in Europe, the United States and the Lloyd's of London can issue a seven-day notices of cancellation or change terms in the event of a major conflict when they feel the risk is too great.
Insurers for Israeli flag carrier el Al Airlines Israir and Arkia have previously said they can issue such notices due to the war between Israel and Palestinian insurgents Hamas. Israeli airlines have now received the notices, two sources told Reuters, without naming the airlines.
'War underwriters' appetite for continuing to cover these risks for no additional reward differs and some are now looking to withdraw cover, especially given the news the Israeli government has provided a backstop to cover flights,' said Bruce Carman, chief underwriting officer at Hive Underwriters.
Israeli's parliamentary finance committee last week approved a plan to provide a state guarantee of US$6 billion to cover insurance against war risks to Israeli airlines.
El Al and Arkia said the government was providing all necessary coverage for them to continue operations safely.
Israir said it had not been served notice by its insurers, but did not provide additional details. Lebanon's Middle East Airlines declined comment.
Israeli carriers have continued to fly while most foreign airlines have cancelled flights to Tel Aviv, expanding flights to bring back those travelling abroad and those called up to reserve service for the military.
SeaNews Turkey