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After the terrorist attacks in America last September, terrorist risk became the pariah of perils. The airline industry was most directly affected by the attacks, and it was the first to find that no one wanted to insure terrorist risk. Insurance companies immediately increased premiums and cut cover for airlines’ third-party terror and war liabilities to $ 50m per airline, per "event". Under pressure from airlines, the American government and the members of the European Union agreed to become insurers of last resort for airlines’ war and terrorist liabilities, for a limited period. These government guarantees are due to expire at the end of the month.
The American government has already agreed to extend its guarantee for another 60 days. The EU’s transport ministers are meeting next week in Brussels to decide what to do. Insurers and re-insurers are keen for the commercial market to resume the provision of all airline ins
A. will cancel the provision of all airline insurance.
B. could not sustain another sudden catastrophe.
C. must cope with a rare risk of a political nature.
D. will be integrated into an insurance vehicle.
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After the terrorist attacks in America last September, terrorist risk became the pariah of perils. The airline industry was most directly affected by the attacks, and it was the first to find that no one wanted to insure terrorist risk. Insurance companies immediately increased premiums and cut cover for airlines’ third-party terror and war liabilities to $ 50m per airline, per "event". Under pressure from airlines, the American government and the members of the European Union agreed to become insurers of last resort for airlines’ war and terrorist liabilities, for a limited period. These government guarantees are due to expire at the end of the month.
The American government has already agreed to extend its guarantee for another 60 days. The EU’s transport ministers are meeting next week in Brussels to decide what to do. Insurers and re-insurers are keen for the commercial market to resume the provision of all airline ins
A. airline disasters severely affected the mutual fund.
B. terrorist risk was the chief concern for governments.
C. insurance companies refused to pay their premiums.
D. terrorist liabilities are not accepted by insurance companies.
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