The crash of an Ethiopian airliner in March may impact the earnings of reinsurers including Swiss Re as they also face demands to cover for claims arising from the grounding of the Boeing 737 Max 8 fleet.
The crash of flight ET302 on March 10, 2019 may end up becoming one of the most expensive aviation insurance case in peacetime, according to «Reuters» news agency. A consortium of reinsurers face claims covering the loss of life and aircraft but also the global grounding of Boeing’s fleet of 737 Max 8. Airlines and authorities reacted with a ban after the second crash of the new type of airliner within five months.
Together, reinsurers face claims reaching about $1 billion, according to James Vickers, the chairman of Willis Re International. This corresponds with premiums of as much as four years in the relatively small aircraft insurance business, he told «Reuters».
Munich Re Estimate
Switzerland’s Swiss Re, the world’s second-largest reinsurer, was also exposed to Ethiopian Airlines and Boeing, the company has told «Reuters» earlier. The company hasn’t yet given an estimate of how much it will have to pay out to cover for the claims.
Munich Re expects claims to reach some 120 million euros ($134 million). The crash claimed the lives of 157 people.
