There has hardly been a better time to be a buyer of aviation insurance, as all signs point to a buyer’s market. Several factors are driving lower rates in this insurance segment, including fewer airline accidents, lower overall insurance claims, the economy, more underwriters entering the market, increased adoption of safety management systems and more sophisticated aircraft. AIN talked to David McKay, president and CEO of insurer USAIG, to get a better sense of this market. USAIG and McKay are here at the Paris Air Show supporting long-time customer Bombardier.
There has hardly been a better time to be a buyer of business aircraft insurance, according to aviation insurance brokers, underwriters and industry consultants that AIN canvassed for this article. All signs definitely point to a buyer’s market, with some customers almost able to name their own price. While rates are already low, they could descend even further over the next 12 months if the industry stays on its current course.
Bad weather, fewer patient transports and a higher percentage of uninsured patients combined to create a surprise loss during the first quarter at Air Methods, the largest air ambulance provider in the U.S. CEO Aaron Todd hinted that the downturn was just temporary.
Most of us have a love/hate relationship with insurance; we hate paying the premiums but if something goes wrong, we love having someone else who was willing to take the risk resolve many of the headaches. Across the U.S. aviation industry, there are so many insurance companies willing to shoulder the risks that the premiums remain at low levels even for the riskier helicopter segment.
Duncan Aviation’s parts consignment program sold $1.07 million in consignment parts and rotables last year and saw the number of consigners increase by nearly 30 percent. Customer parts are stored in Duncan’s warehouse until sold. During the process, the consigner retains title to the inventory. Duncan Aviation also protects the consignor in case the purchaser defaults on payment and maintains insurance against casualty and subsequent loss.
The Middle East Business Aviation Association (MEBAA) general assembly elected two new board members yesterday and held a workshop for its MEBAA aviation insurance scheme (MAIS). Saudia Private Aviation managing director Wajdi Al Idrissi and Comlux president and CEO Richard Gaona were elected to the association’s board, where they join other industry leaders to promote business aviation in the Middle East.
The Middle East Business Aviation Association (MEBAA) general assembly elected two new board members yesterday and held an insurance workshop for its MEBAA aviation insurance scheme (MAIS).
Wajdi Al Idrissi, managing director of Saudia Private Aviation (SPA), and Richard Gaona, president and CEO of Comlux Management, will join other industry leaders to promote business aviation in the region and beyond as members of MEBAA’s board.
American International Group has agreed to sell up to a 90-percent stake in International Lease Finance Corporation (ILFC) to a group of Chinese investors led by Weng Xianding, the chairman of New China Trust Company, AIG announced today.
Aviation insurer Chartis has added crisis response coverage to aviation policies for corporate customers, including airports and charter management companies. The new product provides customers access to immediate funds for crisis management costs resulting from a catastrophic event. With the coverage, policyholders can receive up to $250,000 of additional policy limits for costs associated with hiring a crisis management firm to help manage reputation risk, as well as for other crisis-related expenses, such as temporary living, travel, counseling, medical and funeral costs.
In response to “the current state of the U.S. economy,” Signature Flight Support is levying a new “infrastructure fee” on its customers. The non-waivable per-visit surcharge is–according to a company spokesman–“to assist in recovering expenses for upgrades to facilities, security, insurance increases and other fees charged to Signature to maintain standards for service, safety and security for our customers, crews, passengers and aircraft.” The fee is waived for Signature-based customers departing their home facility and for charity flights.