Lloyd's is to stress test the ability of the market to withstand a major terrorist attack on planes and airports.
The Realistic Disaster Scenario (RDS) test, the first to be carried out on the potential insurance losses resulting from an aviation-related attack, will ascertain whether individual syndicates are capable of withstanding losses from terrorist assaults on some five airports plus damage on up to 15 passenger planes.
The RDS creates three disaster scenarios:
1. A terrorist attack on a single airport which results in the complete destruction of five aircraft and damage to a further ten aircraft. Airport staff fatalities and damage to property is also incurred.
2. A terrorist attack, similar to the above scenario, but happening at five different airports.
3. A terrorist attack on five aircraft in the air in which all planes are destroyed and all passengers killed.
Commenting on the reasons behind the tests, Rolf Tolle, Lloyd's Franchise Performance Director, said that recent events had highlighted the fact that airports and aircraft were now deemed significant targets for terrorist attacks
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