Recent Developments in the Aviation Insurance Industry

23 Pages Posted: 9 Apr 2012

See all articles by Triant Flouris

Triant Flouris

York College CUNY

Kuntara Pukthuanthong‐Le

affiliation not provided to SSRN

Dolruedee Thiengtham

Concordia University, Quebec - John Molson School of Business; University of Exeter Business School - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: Fall 2009

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

Flouris, Triant and Pukthuanthong‐Le, Kuntara and Thiengtham, Dolruedee, Recent Developments in the Aviation Insurance Industry (Fall 2009). Risk Management and Insurance Review, Vol. 12, Issue 2, pp. 227-249, 2009, Available at SSRN: https://ssrn.com/abstract=2036884 or http://dx.doi.org/10.1111/j.1540-6296.2009.01165.x

Triant Flouris (Contact Author)

York College CUNY ( email )

94-20 Guy R Brewer Blvd,
Jamaica, NY 11451
United States

Kuntara Pukthuanthong‐Le

affiliation not provided to SSRN

No Address Available

Dolruedee Thiengtham

Concordia University, Quebec - John Molson School of Business ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1M8
Canada

University of Exeter Business School - Department of Finance

Streatham Court
Exeter, EX4 4PU
United Kingdom

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