Page 44 - The Insurance Times August 2022

Advantage for the sector: Aviation insurance policies are highly
1. Robust demand
reinsurance driven.
2. Increasing investment

3. Opportunities in MRO - Maintenance, Repair and
Operations
4. Policy Support

Aviation insurance
Aviation insurance is insurance coverage geared specifically
to the operation of aircraft and the risks involved in aviation.
Aviation insurance policies are distinctly different from those
for other areas of transportation and tend to incorporate
aviation terminology, as well as terminology, limits and
clauses specific to aviation insurance.
Over the last 10 years GIC Re has emerged as one of the
Factors that determine aviation premiums are- largest aviation reinsurers in the international market and
is playing a key role in supporting Indian Insurers.
Type of aircraft
Value of the aircraft
Reinsurance Companies earned premium
No. of engines in the aircraft
(last 5 years)
Seating capacity of the aircraft
Parking slot of the aircraft
Use of the aircraft

Indian Insurers have come a long way in developing the
market capacity for aviation insurance business and as
India's growth story continues, Insurers have kept pace with
the growing demand from buyers in India. Today the Indian
market is playing a key role in supporting not only buyers in
India but also buyers in the sub-continent, including major
support to the SAARC region.

On the Airline front, pricing continues to be driven by leading
Challenges for the insurers
international markets especially in London, as Indian
Aviation as an industry itself is a challenge let alone the
Insurers continue to off load major risks to international
insurance related to it. The industry is so volatile and
companies mainly in the European sub-continent, with
unpredictable that having a farsightedness is nothing but
insurance brokers playing a very important role in the entire
being hypothetical. The market is cruel due to heavy taxes,
process.
tough competition and unprecedented events such as
pandemic. When the industry suffers an economical hit, the
Types of Insurance policy offered-
insurance takes the collateral.
Public liability insurance
In India, not every general insurance company provides the
Passengers' liability
aviation cover. Therefore, there is a lack of aviation pool.
Hull all risk The claims are very rare and happens once in a while. Still
some insurers fear to enter the segment where claims have
Hull total loss only
a potential to bankrupt the entire company. And that is why
In-flight insurance
the insurers who are active in the segment goes for the
Liability only reinsurance cover.
44 The Insurance Times, August 2022