News: Volcanic dust crisis likely to have little impact on insurance

The insurance industry's exposure to the eruption of the Eyjafjallajökull volcano in Iceland will be limited despite the widespread disruption caused to the aviation industry.

Although the ash cloud closed much of Europe's airspace, Dominic Simpson, VP-senior credit officer at Moody's, said that the extent to which the insurance industry would cover losses from the disruption was expected to be limited because business interruption clauses would not be triggered.

"From an aviation perspective, business interruption insurance claims are only valid for airlines and airports if there has been physical damage to their property. This has not been the case since the rapid