RAMON BLANCHARD

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There currently are three broad different types of aviation insurance companies in the world.

• The first type of insurance is where service providers pool their resources to be able to provide coverage.


• The second form of aviation insurance is where specific individual insurance companies provide the coverage directly independently forms and policies.


• Finally, there are Lloyd's of London correspondents that come with coverages and policies which are much like the pooling type involving carriers.

You can find five broad sectors available that typically purchase aircraft/aviation insurance coverage.

1. General aviation covers all aviation other than the airlines. As far as amounts go general aviation definitely has the most planes that are insured.


2. Airlines whether they are national carriers or local carriers or private carriers make up the majority of the insurance buyers whose premiums are unequivocally the greatest as respect to the length of premiums.


3. That distribution channels of aircraft, from manufacturers to distributors to wholesalers and lastly retailers also are purchasers of aviation insurance.


4. Airports purchase aviation insurance and there are actually two basic types.

• The commercial airport which deals with airlines, and the


• Fixed base operators that primarily overcome general aviation planes together with pilots.

Aviation insurance is unique in several ways but one of the most specific uniqueness is that most claims are generally catastrophic in nature not minimal losses or damages. Loss of life, loss of the aircraft and decrease of revenue is enormous should there be an aircraft catastrophe.

Aircraft policies are very like ocean marine policies. Typically aircraft liability and property policies have limitations with regards to pilot experience, types of aircraft, types of cargo on board, and the geographical destinations all going to play in aircraft insurance coverage contracts.

The underwriting with regard to aircraft insurance has a unique unique characteristics. Some in the typical areas of concern for any underwriters which goes in the underwriting process are that of:

• Pilot experience, specifically the hours they have flown and what type of aircraft they have flown with. The vast majority associated with commercial airline pilots has usually show up through the military ranks and has now the required hours that are needed in order to fly commercial airlines. On the general aviation side that is normally not the case. Recreational pilots are generally the norm.


• The type of aircraft that is being flown and the


• Purposes in the flights are an vital underwriting concern.


• As in all policies underwriters are concerned with past claims and losses or potential for losses.


• Currently one of the primary concerns in aviation risk management underwriting is based on the flight path of the aviator and it is aircraft. There are many hotspots in the world with terrorist activities, cutthroat buccaneers, global unrest and the like. Flying in known geographical areas where there's war or rumors of war and unrest may very well be very high risk from an underwriting standpoint.

The premiums in the aviation industry typically fluctuate based upon catastrophic events. After the 9/11 terrorist attack in The big apple, the aircraft insurance premiums skyrocketed, and compounding this was the issue of flying by the general public which caused revenues to look down for the air carrier industry. Airline premiums are definitely of a feast or famine form of cycle versus steady increases or steady declines. Pilot Manuals