INSURANCE European governments are likely to extend their reinsurance of aviation war risk cover after this week's initial 30-day deadline. Troika Insurance, a company formed by the UK Treasury with brokers Aon, Marsh McLennan, and Willis, can continue to guarantee risk until the end of the year, after European Union finance ministers agreed temporarily to permit state aid to insurers "on condition that it does not place the airlines in a more favourable position than prior to the withdrawal of insurance cover". The Treasury has stated its desire to transform the company into a wholly commercial concern, but was unable to reach an agreement before the 24 October deadline. In the longer term, industry insiders point to the creation of a new "Pool Reinsurance" company with the airline industry, the government and insurers sharing risk, as the most likely option.
Source: Flight International