When the Sept.11 terrorist attacks occurred, its influence shakes the whole world especially in airlines. In addition to the aviation’s transported volume on obvious reduction, the attacks also triggered a dramatic rise in aviation insurance premiums and slashed the maximum war risk third-party liability compensation from US$1.5 billion per accident to only US$50 million. The airlines feared that insufficient cover will force the airlines to ground their fleets.
All government''s financial guarantee gave the nation''s airlines temporary coverage above that amount to keep aviation transportation working. In parallel with the government scheme in 2002, some insurance companies entered the market to provide essential cover over and above the basic $50 million and a number of mutual fund solutions were under consideration in the U.S., Europe and a global level.
The thesis is to study the scheme that the world proposed in insufficient war risk liability cover after sept.11 and how to apply pool to aviation war risk liability insurance in domestic property insurance companies.
