With the country in mourning for the tremendous loss of life from the terrorist attacks, the financial loss seemed to pale by comparison. But as Americans began to recover from the initial shock, the economic concerns loomed darker, and the insurance industry was among the first to feel the fiscal effects. It was also one of the first to put measures into effect to minimize losses and recover from the economic blow.
Types of insurance
Travelers Aviation, part of The Travelers insurance company, made its debut at the 2007 AIA convention at Indian Wells, Calif. This year in Nashville, Gordon Murray, its president, told AIN that in the past year Travelers has booked premiums in the millions of dollars and continues to look for opportunities. “The marketplace out there is competitive.
Despite the economic uncertainty in the U.S. and abroad, the mood was decidedly upbeat at the Aviation Insurance Association (AIA) convention April 26 to 29 at
the Gaylord Opryland resort in Nashville. In fact, due in part to the downturn in financial circles, aviation insurance–a truly worldwide industry–has been experiencing a mini-boom that is benefiting the insured, large and small.
In the months since September 11, the insurance industry has taken a beating. Some estimates–and they are still just estimates–put the total losses in excess of $100 billion.
Within days of the terrorist attacks, it was apparent that efforts by insurers to cope with the disaster would translate to higher costs and changes in coverage limits. So far, this is being proved out.
Someone I used to know–a father and general aviation pilot–questioned why he needed life insurance, because, quote, “I won’t be around to enjoy it.” He could well afford it, but apparently his survivors’ welfare didn’t warrant the few bucks a month a policy would cost.
So called “showstoppers” insurance, a form of business interruption coverage, will likely help NBAA recover some of the expenses and lost revenue the association incurred when it postponed last year’s annual convention from September and moved it to December. The NBAA Convention has always been covered under showstoppers insurance, but this is the first time the association is making a claim.
With regard to liability insurance, answers to the question of “How much is enough?” have always been something of a mystery. But for shareholders in a fractional program, the answers are compounded by the concept of shared ownership.
Aviation insurance rates can be affected by the vagaries of the stock and investment markets, insurance claims unrelated to the aviation industry and historic peaks and valleys in policy pricing. And further cost pressures are added because the number of aviation insurers continues to decrease.
Following last September 11, aircraft owners and operators began bracing for massive hikes in insurance coverage and changes in the limits of that coverage. Now, a year later, their fears are being realized. But while rates have risen, sometimes triple those before September 11, the increases are not without some justification. The question is, just how much is justified?
Eclipse Aviation announced that it will partner with underwriter Global Aerospace Underwriters to provide hull and liability insurance to owners of owner-flown Eclipse 500s.