German giant Allianz has combined with a number of international partners to develop a product that deals with aviation terrorism and war third party legal liability.

The new product offers cover for up to $2 billion per aircraft with a maximum of $4 billion per airline, per year. It forms part of a wider scheme which Allianz says is the key to making this type of cover possible.

What sets this product apart is the Allianz guarantee that individual policies cannot be cancelled unless four major events occur and result in losses under the major scheme. The price of coverage is calculated per passenger carried.

Expect more such products entering the market as insurers reassess their aviation risk position and find there’s money to be made in the market.