Commercial insurers will not likely have to pay business interruption or aviation claims stemming from the Iceland volcano eruption, but travel insurance claims for individuals could be paid under certain circumstances.

A second, more gigantic, ash cloud eruption from another Icelandic volcano named Katla is now "probable" a catastrophe modeling firm is warning.

For some it's a battle, for others it's a complement. The direction of personal lines insurance is a source of continuing debate as insurers define and hone their channel strategies between agent-based sales and direct to the consumer.

Experts today said insurers will not likely have to pay business interruption or aviation claims from the Iceland volcano eruption, as such a rare event is not likely to be covered by the policies.