Aviation insurers divided on response after Saudi airport strikes
By Michael Jones Oct 13 (The Insurer) — Aviation insurers are assessing their response to the strikes on Saudi Arabia's King Khalid International Airport and Dammam International Airport, with market participants divided on whether to impose additional premiums or issue cancellation notices, multiple aviation insurance sources told The Insurer. Two senior aviation broking sources said insurers had not issued cancellation notices for Saudi Arabian airspace. However, one underwriting source said they were aware of an account that had issued a cancellation notice relating to its all-risks placement. The Insurer could not confirm the identity of that account prior to publication. One broking source said additional premiums had been imposed for some Saudi airports, although they did not specify which locations. The source said the surcharge was about $0.75 per passenger for third-party war liability cover, adding that they had not seen similar measures applied to hull war programs. Another broking source said views varied across the market and described the situation as highly sensitive. The source said disagreement centred on whether insurers should impose additional premiums, issue ca
By Michael Jones Oct 13 (The Insurer) — Aviation insurers are assessing their response to the strikes on Saudi Arabia's King Khalid International Airport and Dammam International Airport, with market participants divided on whether to impose additional premiums or issue cancellation notices, multiple aviation insurance sources told The Insurer. Two senior aviation broking sources said insurers had not issued cancellation notices for Saudi Arabian airspace. However, one underwriting source said they were aware of an account that had issued a cancellation notice relating to its all-risks placement.
The Insurer could not confirm the identity of that account prior to publication. One broking source said additional premiums had been imposed for some Saudi airports, although they did not specify which locations. 75 per passenger for third-party war liability cover, adding that they had not seen similar measures applied to hull war programs. Another broking source said views varied across the market and described the situation as highly sensitive.
The source said disagreement centred on whether insurers should impose additional premiums, issue cancellation notices, or take no action. Any such measures would likely apply to Saudi airspace more broadly rather than individual airports, the source added. One underwriting source said a lack of information from Saudi Arabia was making it difficult for insurers to assess the risk environment. One person was killed and 11 were injured in an attack on Riyadh's international airport on Sunday, Saudi authorities said, a day after a strike claimed by Yemen's Iran-aligned Houthis killed 13 people and wounded more than 300.
The Saudi-led military coalition in Yemen said an unidentified projectile struck Terminal 4 at Riyadh's international airport on Sunday, causing a fire. The Saudi civil aviation authority said 11 people were injured in addition to the fatality. Houthi military spokesperson Yahya Saree said on Sunday that the group was responsible for Saturday's attack and had also struck Dammam airport in Saudi Arabia's Eastern Province. Operations at King Khalid International Airport, Saudi Arabia's second-busiest airport after Jeddah, were suspended to allow safety inspections and operational checks, the Saudi civil aviation authority said in a statement.
A Notice to Airmen issued later on Sunday said the airport would remain closed until 2100 GMT on October 17. The airport has been shut since Saturday's attack.