AIG Is Lead Insurer for Plane Crashed in Taiwan, Aon Says

Jul 23, 2014 8:00 pm ET

(Updates with airline statement in fifth paragraph.)

July 23 (Bloomberg) -- American International Group Inc. is the lead insurer of the TransAsia Airways Corp. passenger plane that crashed near Taiwan’s Magong airport, according to Aon Plc, a broker that tracks the market for aviation coverage.

The ATR-72 plane is valued at about $13.2 million, according to a report today from Aon. The crash left 47 people dead and injured 11, according to Taiwan’s Aviation Safety Council.

Claims for airline insurers have increased after years in which the industry benefited from a lack of crashes. Allianz SE and Atrium Underwriting Group Ltd. were among insurers of the Malaysian Air passenger jet that was shot down over Eastern Ukraine.

The TransAsia twin-engine turboprop crashed in heavy rain on its second approach to the airport on the island of Penghu. Matt Gallagher, a spokesman for New York-based AIG, declined to comment.

TransAsia said in a statement that it has “sufficient aviation insurance, customer-liability insurance and third-party responsibility insurance” to cover its fleet. The crash won’t affect normal business operations, the airline said.

--With assistance from Noah Buhayar in New York.