Insurers bulked up on airline risk as export credit agencies pulled out
Private sector insurance companies have written extensive guarantees for the purchase of new aircraft from Boeing and Airbus in the past two years, filling a gap in the market left by the retreat of US Eximbank and European export credit agencies. But with aircraft around the world grounded and airlines slashing capital expenditure, these insurance firms could be stuck with the risk.
Insurance broker Marsh launched the Aircraft Finance Insurance Consortium in collaboration with Boeing, as US Congress declined to reauthorise US Eximbank’s guarantee programmes, which were formerly used to support the sale of Boeing aircraft to airlines around the world.As airlines are frequently of low credit quality, a ...
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