Can Rapidly Growing Aviation Industry Keep Losses Low?

Aviation

Statistics from the National Transportation Safety Board indicate zero fatalities and only 25 serious injuries between 2010 and 2016 (the most recent year for published data) for aircraft with 10 or more seats used in scheduled passenger service. But don’t let those great numbers deceive you. Numerous other costly incidents have happened. Those include about 200 accidents for scheduled and non-scheduled U.S. carriers and commuter operators and more than 9,000 accidents for U.S. general aviation over the 2010-2016 time period.

With revenues in the commercial aircraft sector forecast to grow 4.8% in 2018 and demand for air-passenger travel burgeoning, commercial aircraft producers and carriers will be hard-pressed to meet production and flight schedules. Speed and volume can lead to errors in any industry, so excellence in aviation loss control is paramount in order to prevent property damage, accidents and injuries.

Risk management programs are crucial at fabrication companies as well as airlines, airports, and repair and maintenance hangars. With the complex array of stakeholders in the production and operation of aircraft, aviation companies need an expert team handling loss control — from risk managers at individual companies to insurers with longtime expertise in the industry and global capabilities.

A great insurer won’t just focus on the placement of aviation insurance and claims processing. It will bring to the table safety and loss control services and other lines of coverage as needed. A highly integrated insurer will be able to reach outside its aviation department to help the broker and policyholder secure other important lines of coverage within the company as needed. Additionally, crisis response services with global access are a critical component in a solid insurance program.

Air travel has improved in safety but not without investment from all participants in the industry. We all need to play a role in loss control at our own businesses and conduct reasonable but diligent oversight of our partners. An insurer with deep expertise in the field can ask crucial questions about multiple aspects of your aviation operation. That kind of team member brings unparalleled value and vision across a complex industry.

Click here to read a more complete analysis, Aviation Insurance for Risks from the Simple to the Complex.

Reach out to Jim Anderson, SVP of light aviation for more information on how a Starr solution can work for you, or visit www.starrcompanies.com/insurance/aviationoverview.com.

Published Date October 02, 2018 File Adobe Acrobat PDF, 253.2 KB Download