Marsh introduces aircraft financing product
Saturday, 06 03 2017, Category: Insurance and Reinsurance, Country: World
Marsh has created a non-payment insurance product designed for banks and capital market investors that are funding new aircraft purchases from Boeing.
The Aircraft Finance Insurance Consortium (AFIC) provides an alternative aircraft finance insurance product for new aircraft deliveries.
AFIC is underwritten by Allianz, AXIS Capital, Sompo International (formerly Endurance) and Fidelis.
This structure has already been used by a major international airline to support the financing of new Boeing 747 and 787 aircraft, according to Marsh.
AFIC aims to obtain more efficient financing by utilising insurance to protect the lender’s exposure to default for the duration of the loan.
Source: Intelligent Insurer