Airlines across the world are cancelling flights amid safety fears and will have to claim on their insurance to refund passengers.
A spokeswoman for the ABI said: “From a cost point of view, it is not the ABI members who will be bearing the cost. Lloyd's are involved in insuring property and aviation.”
On the plummeting shares of major UK insurers such as Royal & Sunalliance and CGNU, she said: “The matter will resolve itself when it becomes clear that most UK insurers do not insure those risks. Shares may have dropped due to the initial shock.”
