Regional airlines assessing insurance risk
GCC airlines’ “excellent” loss record allows them to maximise benefits as buyers in the insurance market, according to an insurance specialist.
Speaking exclusively to Aviation Business at the Arab Air Carriers Organisation annual general meeting, held in Kuwait last month the London-based global practice manager at insurance broker Aon, Steven Doyle, attributed the “excellent” loss record to the speed of development and level of investment in the region.
He said: “This has meant there are new aircraft and new technology which is proven to contribute to aircraft operating safely.”
He added that growth in the region’s aviation industry provides an ideal opportunity for airlines to consider their insurance purchasing.
“The growth in the industry is changing the risk profile of the global market.
It’s not facing the same challenges as emerging markets like China or India.”
He noted that the US used to dominate with 40% of the world’s fleet and passenger numbers but said that it has now diminished to below 35% as a result of 9/11 when the market retracted.
Aon provides risk management and insurance broking service to Ras Al Khaimah airport and RAK Airways, Kuwait Airways, Abu Dhabi-based Etihad, Royal Jordanian and Lebanon-based Mena Jet.
“From an insurance purchasing point of view, the region enjoys huge advantages from economies of scale of exposure, through a group purchasing arrangement by the majority of the GCC airlines.”