Iran: Latest Aviation Risk Update From the LMA

 The latest assessment of the situation, from Neil Roberts, Head of Marine and Aviation at the Lloyd’s Market Association;

“In the last month, McKenzie Intelligence Services has confirmed that six international airports (in Bahrain, Iraq, Kuwait and the UAE) have been attacked and more than 20,000 flights cancelled. Airspace has also been closed from time to time in many of the impacted countries in the Middle East.

The Lloyd’s Market Association (LMA) has carried out a survey in the last 24 hours of the members of our Aviation War Committee who are leading members of the aviation war market. All members who responded have confirmed that they continue to have appetite to underwrite hull and liability war risks and the majority of existing aviation war policies remain in place. Most have not seen any increase in price for non-war cover for over-flights.

In summary, insurance is available for any airlines wishing to fly where airspace is open across the Middle East. The aviation operators have not been issued with notices of cancellation across the board by insurers and nor are they consistently having to face rate increases.

Since the beginning of the conflict, the LMA has been working closely with aviation insurers to ensure they receive immediate notice of a “material change” in the insureds’ operations as they resume flying when airspace opens. While underwriters have not been issuing blanket notice of cancellation, they do need to understand the extent of their exposure.”