Paris based AXA led the coverage brokered by London based JLT Aerospace inc. Other insurers American International Group (12.5% of the coverage but loss capped at €21 million). AIG Munich..
The hull was valued at $100 million. It is too early to speculate on the likely size of the liability loss because those payments vary widely depending of the personal details of the victims such as earning potential and dependants, and which country takes the case. That could be complicated – the plane was owned cby Air France, built by European consortium Airbus with parts supplied from around the world, and crashed in international waters with passengers from residents of 32 countries.
If the Air France loss proves to be very significant then it could put upward pressure on premiums.
Airlines must pay $25000 to family victims to cover immediate economic needs within 15 days of identifying appropriate recipients.
The average liability for for aviation deaths in the US is 1.5 to 2 million and about $150k outside the US.
Liability figures are based in part on passenger numbers carried. (projected passenger demand falling 8% this year)
Before AF there had been $706 million in airline losses this year.
Source: Business Insurance Z Philips