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Recent Developments in the Aviation Insurance Industry

Author

Listed:
  • Triant Flouris
  • Paul Hayes
  • Kuntara Pukthuanthong‐Le
  • Dolruedee Thiengtham
  • Thomas Walker

Abstract

The aviation industry has been hard hit in recent years. While there are numerous factors that have contributed to the industry's dilemma, rising and volatile insurance premiums—particularly after the events of 9/11—have posed a particular problem for many airline managers. Despite a general trend for accident rates involving commercial passenger airplanes to decrease as aviation technology has advanced over the years and airplanes have become safer, the aviation insurance market has been far from stable. This article provides an overview of how the aviation insurance industry works and how it has changed in recent years. We take a look at how the risk is spread between insurers, how insurers treat deliberate acts of violence, and lastly, how insurers price the risk. Our article shows that the aviation insurance market has undergone considerable changes in recent years and that it has adjusted to the post‐9/11 aviation insurance realities being reasonably ready to handle events of an even more catastrophic magnitude.

Suggested Citation

  • Triant Flouris & Paul Hayes & Kuntara Pukthuanthong‐Le & Dolruedee Thiengtham & Thomas Walker, 2009. "Recent Developments in the Aviation Insurance Industry," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 12(2), pages 227-249, September.
    • Handle: RePEc:bla:rmgtin:v:12:y:2009:i:2:p:227-249
    DOI: j.1540-6296.2009.01165.x
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    File URL: https://doi.org/10.1111/j.1540-6296.2009.01165.x
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    References listed on IDEAS

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    Cited by:

    1. Walker, Thomas John & Walker, Marcus Glenn & Thiengtham, Dolruedee Nuttanontra & Pukthuanthong, Kuntara, 2014. "The role of aviation laws and legal liability in aviation disasters: A financial market perspective," International Review of Law and Economics, Elsevier, vol. 37(C), pages 51-65.
    2. Onder Kaymaz & Ozgur Kaymaz, 2015. "Profit Return In Civil Aviation And Fleet Insurance: Gaap, Financial Reporting And Tax Applications," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 6(2), pages 45-57.
    3. Fox, Sarah, 2014. "Safety and security: The influence of 9/11 to the EU framework for air carriers and aircraft operators," Research in Transportation Economics, Elsevier, vol. 45(C), pages 24-33.

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