Aerospace companies trying to bounce back from the downturn face many challenges, including rising costs, but they are still enjoying one blessing: lower insurance costs. The latest “Aerospace Market Outlook” report from leading insurance group Aon Risk Solutions shows the industry now starting its fifth consecutive year of falling premiums.
Types of insurance
Newly hired general aviation industry workers are most at risk for suffering on-the-job injuries, according to a study released recently by United States Aviation Underwriters (USAU). In an attempt to categorize the areas where most injuries and worker-compensation claims occur in the GA industry, USAU studied the last 10 years of insurance claims from its clients.
Contract fueler and trip support specialist Colt International (Booth No. 6237) has made its initial entry into the aviation insurance business with the launch of Colt Risk Management Services (CRMS). Based on its experience working with more than 4,000 flight departments and operators, the company plans to provide custom coverage solutions for any aviation company.
Aviation Alliance Insurance Risk Retention Group (AAIRRG), an entity that provides product liability insurance exclusively for Arsa member repair stations, will be able to offer that coverage at well below market rates, according to the group.
The Aeronautical Repair Station’s efforts to create a risk-retention group to provide commercial liability insurance for its members is closer to fruition. In late June, the Aviation Alliance Insurance Risk Retention Group (AAIRRG), established by ARSA and Polaris Enterprise Group, received its certificate of authority (insurance license) from the state of Montana.
Buyers of coverage for aircraft, aviation businesses and property have found a silver lining in the recession: relatively stable prices for insurance. Attendees at this year’s Aviation Insurance Association (AIA) conference confirm the news; too much available insurance capacity means that no underwriter has the power to raise prices.
The Aviation Alliance Insurance Risk Retention Group (AAIRRG), developed by the Alexandria, Virginia-based Aeronautical Repair Station Association (ARSA) and Polaris Enterprise Group, received its certificate of authority (insurance license) this week from the state of Montana. AAIRRG will provide product-liability insurance exclusively to repair stations that are ARSA members.
The February 6 collapse of the Dulles Jet Center roof under a heavy blanket of snow– and the estimated $300 million worth of corporate jets damaged or destroyed in the event–has raised questions about insurance liability.
In an economy that has ravaged aviation, one stable segment is the insurance industry, but change is coming. “Nobody knows what [the future is] going to look like,” an industry expert told AIN.