Page 47 - Insurance Times June 2024

conditions of such insurance policies may not be favourable find it advantageous to continue with employer-offered
to the customer. health insurance if possible, where insurers can provide
A 70-year-old individual who may now have the opportunity more competitive premium rates and favourable policy
to buy health insurance for the first time, will likely conditions," Anuj Parekh, Co-founder and CEO, Bharatsure,
encounter stringent terms, exclusions, and possibly high said.
premiums. Since people in the 65-plus age group often have Ultimately, while IRDAI seeks to promote access to
pre-existing conditions, insurers will carefully evaluate the insurance for older age groups, its move also underscores
profitability, sustainability, and scalability of their policies for the importance of aligning insurer interests with customer
this demographic. needs to ensure comprehensive and equitable coverage
"Individuals seeking health insurance post-retirement may across all demographics, Parekh said. (Indian Express)

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All aviation policies include some form of the war, hijacking, often discussed as two separate markets; the hull war market
and other perils exclusion clause - clause AVN48B - which and the excess third-party war liability market. Combined, we
excludes coverage for war perils. In this context of aviation estimate that the two represent several hundred million dol-
coverage, war perils are not limited to armed hostilities be- lars in annual premium globally. These niche markets typically
tween nations, but typically are broadly defined to include are invariably subject to more volatility than the broader avia-
many types of conflict, including strikes, terrorism, rebellion, tion market; the hull war market in particular has been chal-
pilot suicide, and malicious acts. lenged recently by potentially large loss activity.

This exclusion applies to physical damage, or hull, coverage While Summing Up:
and third-party liability coverage, but not to passenger liabil- Aviation is the integral part of transportation systems
ity. When aviation insurance buyers purchase war risk cover- around the world and its contribution to the entire global
age, they are generally adding back coverage for all of the economy is evident. The aviation sector has already made
perils excluded under the endorsement, with the exception significant progress in cutting emissions over several de-
of coverage for the use of nuclear/radioactive weapons. cades. In fact, the newest aircraft in service today are over
80% more fuel efficient per seat and kilometer than the first
There is no commercial insurance coverage available for jets in the 1960s, this was possible due to massive invest-
claims arising from the detonation of atomic or nuclear weap- ments in research and development areas. But far more
ons/perils. Typically, the write-backs are included within these needs to be done for the industry to meet its pledge of cut-
"all-risks" aviation policies, with separate add-on cover with ting greenhouse gas emissions by half by 2050, compared
the payment of extra premium, for hull war and third-party with a baseline of 2005's levels.
war liability. For airlines, large manufacturers, and other
major aviation risks, war risk coverage is generally written It must also be stressed that policymakers have been
back via standalone hull war and excess third-party war li- prompted to place the development of zero-emission planes
ability policies. at the heart of the industry's support packages, and manu-
facturers are working to produce new greener prototypes
The war risk pricing and coverage available in the current (including electric aircrafts) which could enter into service in
market varies significantly between aviation market segments about a decade. So in all sense, aviation insurance sector is
and clients. That said, it is anticipated that the cost of aviation having enormous scope, but is subject to so many changes to
war coverage in 2024 will increase, barring unforeseen changes be incorporated therein, in underwriting & claim settlements
in conditions. Changes to coverage and limits are also antici- norms & processes of the insurers, as the 'change' is always
pated in the current market. The aviation war marketplace is omnipresent in this Aviation Insurance.

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