26 January 2018 11:30
Munich Re has developed a new product with the airline easyJet to protect it in case of flight cancellation due to natural disasters. Munich Re states that the coverage is structured to limit the impact of disruption to activities on the financial results of airlines.
easyJet is, among other things, protected volcanic eruptions, winter storms, and bans on flights for security reasons.
Apply the product to other industries
«The possibilities of innovation in the field of business insurance are vast, because all the activities of the industry are vulnerable to interruption. We consider this solution as a plan and we are now working to apply to other industries, » says the director of underwriting special risks business of Munich Re, Claudia Hasse.
Flight cancellations caused by the weather can be very expensive to the airlines. In 2010, the ash cloud caused by the eruption of the Eyjafjallajökull volcano, in Iceland, had greatly affected air traffic in Europe. According to theinternational Association of transport aviation (IATA), the event has led to the cancellation of over 100,000 flights and the total damage amounted to more than us $ 1.8 billion for the airlines.