(Reuters) – Liability claims related to the Ethiopian Airlines crash and the founding of the Boeing 737 MAX 8 aircraft could be the largest non-appropriate reinsurance claim on record beating reinsurance companies' profitability, says reinsurance broker Willis Re.
The crash of Ethiopian Airlines flight ET 302 on March 10 killed 157 passengers and crew, the second deadly crash involving a Boeing Co. 737 MAX 8 airline in five months.
When investigating the crash site and black boxes, the 737 MAX 8 has been grounded globally as a precautionary measure, and the regulators are strengthening action to improve flight safety while Boeing is conducting a software upgrade to the aviation automatic flight control system.
Liability requirements for passengers' loss of life and relationship to the grounded aircraft could amount to about one million dollars, said James Vickers, president of Willis Re International, Reuters by telephone, a large sum for the aircraft reinsurance market that Vickers said was "very small and very much specialist ".
The losses could eradicate three to four years of aviation insurance premiums in the global reinsurance company, says Willis Re on Monday in the summary of the reinsurance business at the key on April 1
For reinsurance, the insurance companies are on the hook for the first part of the claim, and reinsurers only pay out on claims above a certain level.  The UK insurance company Global Aerospace led a consortium of insurance companies and reinsurance companies covering Boeing.