Search

Aviation underwriters are anticipating substantial claims from the crash of a China Airlines Airbus A300-600R jet in Taipei, Taiwan, which resulted in the death of almost 200 people. China Airlines' insurance policy is managed by AIG Europe Ltd. while its hull and liability coverage were placed in the UK market through broker Aon Group Ltd. Aon Group's senior VP Martin Stevens confirmed that the hull value for the aircraft was over $70 million.

The demand for life insurance has increased dramatically in Japan, reflecting the changing attitude of Japanese society on accident and death. However, some companies maintain a less realistic insurance compensation formula. For instance, a Japan-based China Airlines office offered to pay the bereaved families of Taiwanese air crash victims an amount which tops the ceiling set in Taiwan. Airline companies should have a more realistic compensation formula that meets the actual lifestyle requirements of the beneficiaries, whether they are Japanese or not.