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6th November 2019
The long-term improvement in its risk management record of the global airline industry is challenged by a growing number of insurance claims and risks highlighted in new report by Allianz(AGCS) and Embry-Riddle Aeronautical University
The global airline industry has experienced some of its safest years ever in terms of fatal accidents recently, despite a number of crashes. However, the long-term improvement in its risk management record is challenged by a growing number of insurance claims and risks, according to aviation insurer Allianz Global Corporate & Specialty (AGCS).
More costly repairs and engine claims, damage from foreign objects such as bird strikes, ground collision incidents, slips and falls, fleet groundings, mis-fuelling incidents, and liability awards, are just some of the areas in which insurers are seeing heightened loss activity, AGCS highlights in a new report "Aviation Risk 2020: Safety And The State of The Nation", produced in partnership with Embry-Riddle Aeronautical University, the largest, fully accredited university specializing in aviation and aerospace.
“Thankfully, fatal air accidents involving the modern generation of commercial aircraft are now infrequent and the past few years have been among the safest ones in aviation history,” says Tom Fadden, Global head of Aviation at AGCS. “However, the headline improvements in safety shouldn’t lull the aviation industry into a false sense of security. The sheer volume and magnitude of aviation losses is often underestimated–at any time Allianz alone will handle thousands of claims and be it grounding incidents or collisions with drones–there are also many new risks on the horizon which airlines, manufacturers and airports have to prepare for.”
The report, which analyzes more than 50,000 aviation insurance industry claims worth more than €14.8bn($16.3bn) from 2013 to 2018, reveals that collision/crash incidents currently account for over half the value of all claims (57%) equivalent to €8.4bn($9.3bn)–and over a quarter of claims by number(27%). In future, more costly grounding incidents, business interruption incidents resulting from cyber and drone events, and more incidences of turbulence are just some of the trends expected to have an influence on the loss landscape, the report notes.
Allianz Trends(736 articles)