Airlines and insurers are rewriting Cold War-era nuclear policies to reflect modern threats from tactical weapons and global conflicts.
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A nuclear explosion may not actually be the end of the world
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At least that's the new reality airlines and insurers are preparing for
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For decades, aviation policies said a single nuclear detonation meant global grounding
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Those rules were written in the 1950s, back when any nuke was assumed to mean World War III
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But today's threats look different, and the insurance world is catching up
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Gallagher, the world's biggest aviation insurance broker, has developed a new emergency framework based on the simple idea
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that not every detonation means the end of the world. If a tactical nuclear strike happens, say on a battlefield in Europe or Asia
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Gallagher's plan lets a group of 15 insurers meet within four hours
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assess the risk country by country, and decide where flights can still operate
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That's a significant shift from the old automatic shutdown rule, known as AVN-52
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which terminates liability coverage the moment a nuclear blast is detected. That rule is still baked into most aviation policies today
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To fill the gap Gallagher is offering airlines billion in war risk coverage per plane about half of what traditional policies would provide But the cost to passengers Less than a cup of coffee if the coverage is ever triggered The new plan is
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open to any airline, not just Gallagher's clients. And it's meant to extend coverage beyond the usual
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48-hour pause insurers allow after a major event. So far, around 100 airlines have signed on
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including 60 in Europe. Some budget carriers are holding out, but ysts say this kind of
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contingency plan is what the industry needs in a more unpredictable world. One reason for the shift
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tactical nuclear weapons are smaller, more targeted, and more likely to be used regionally
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Russia, China, and North Korea all have them. Russia alone is estimated to have nearly 2,000
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non-strategic nuclear warheads. Gallagher's plan does not erase all the risks. There is still what's
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called the Five Powers Clause. If war breaks out between any combination of the U.S., U.K.
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France, Russia, or China, coverage is void, full stop. But in a world where the unthinkable is no
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longer impossible, insurers are working to ensure a single detonation does not bring global aviation
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to a standstill. For more unbiased updates, download the Straight Arrow News app or go to san.com
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