Guy Carpenter's Instrat unit has released an updated RISK-I report on the Buffalo, N.Y. plane crash that killed 50 people. In the report, Guy Carpenter provides a general overview of the ill-fated Continental Connection Flight 3407, including an update about the ongoing investigation and probable insurance ramifications.

The insured value of the twin turboprop Bombardier Dash 8 Q400 involved was $19 million. In addition to that figure, significant liability claims are expected to result. All 49 passengers and crew onboard the plane died in the incident, and one person was killed on the ground when the plane crashed. Four others were injured on the ground, including a mother and daughter who were inside the affected dwelling.

The aircraft — operated by Colgan Air for Continental Airlines — was flying from Newark Liberty International Airport in New Jersey to Buffalo Niagara International Airport when it nose-dived into the roof of a home at around 10:20 p.m. (EST) on Feb. 12, 2009. According to reports, the plane went down, sparking a fiery explosion about four miles short of Buffalo Niagara International Airport. Witnesses said they heard the plane sputtering before it fell down amid light snow and fog.

According to Insurance Day, Continental Airways is part of an airline insurance group placement that comes under the umbrella of Northwest, which merged with Delta Airways in October 2008. Although Colgan was operating the flight for Continental, market sources said the hull and liability was covered under a Northwest-Delta plan. Sources added that Northwest's lead insurer is Global Aerospace Underwriting Managers Ltd., and that Delta's lead insurer is United States Aviation Insurance Group. Insurance Day reports that this has led to insurers splitting the liability for the incident.

The cause of the tragedy is still undetermined. Having been delivered to Colgan Air on April 16, 2008, the plane was still considered new. Investigators have indicated, however, that the crew of the plane discussed significant ice build-up on the aircraft's windshield and wings prior to the fatal descent. They added that the aircraft's de-icing system was not only in effect for 11 minutes after the flight left Newark but also for the remainder of the flight. The National Transportation Safety Board (NTSB) has confirmed that the plane's black boxes have been retrieved and are bound for Washington, D.C. to undergo analysis.

Among the crash victims was Beverly Eckert, a Stamford, Conn. woman whose husband, Sean Rooney, perished in the Sept. 11 attacks on the World Trade Center. A mere week before her death, Eckert, known for her tireless efforts to promote national safety, met with Obama at the White House as part of a group of Sept. 11 families and relatives of those killed in the USS Cole bombing. She was traveling to Buffalo to celebrate what would have been her husband's 58th birthday.

Guy Carpenter's current RISK-I report is available here.

Sources: www.guycarp.com, www.cnn.com

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