By Michael Jones

June 12 - (The Insurer) - AIG leads the reinsurance program for the London-bound Air India aircraft that crashed minutes after taking off from India's western city of Ahmedabad on Thursday, three senior aviation market sources told The Insurer.

The sources said that Willis is the lead broker for the Air India account, while Gallagher co-brokered the placement.

Air India's cover is partially placed in the domestic Indian market, with around 85% of the risk reinsured in the international reinsurance market, two senior aviation market sources said.

Two senior aviation market sources familiar with the placement said the plane's hull has an insured value of $80 million. The incident also looks set to be another significant liability loss, one separate senior aviation broking source said.

The plane was headed to Gatwick Airport in the UK, Air India said. There were 242 people on board, including 169 Indian nationals, 43 Britons, seven Portuguese and one Canadian. The passengers included 217 adults and 11 children.

The crash occurred just after the plane took off, television channels reported. Visuals showed debris on fire, with thick black smoke rising into the sky near the airport. They also showed visuals of people being moved on stretchers and taken away in ambulances.

The airline market has been hit by multiple significant liability loss events since December 29, 2024, including the Delta Air Lines incident in Toronto, the American Airlines disaster and the Jeju Air crash.

In February, four senior aviation market sources said that at top end of preliminary estimates, losses from incidents thus far in 2025 were close to reaching the airline market’s circa $1.6bn in net annual premium. At the time, three sources said the market would almost certainly suffer a loss in 2025.

Willis and Gallagher declined to comment. AIG did not immediately respond to a request for comment. An Air India spokesperson said: "We would like to inform you that Air India is closely coordinating with all relevant authorities, and any verified updates or official statements will be shared through our official communication channels."