Publications
Partners
Cape Town – Being in the aviation insurance industry could be seen as quite risky, but experts in the industry say there are "good risk" scenarios where insuring can work effectively.
WATCH: The adequate levels of liability protection
Infiniti Aviation GM Carly Ranger and Infiniti Insurance CEO Sharon Paterson spoke to Fin24 about what is "good risk", especially in the aviation industry.
“I am sure that every underwriter’s response will be (that ‘good risk’) is ‘the one that never has a loss!’,” said Ranger.
“The reality is that with every risk comes the potential for loss,” she said. “There are certain risks that are more prone to loss than other risks.”
“When assessing an aviation risk cognoscente is given to the experience of the operator and pilot(s) as well as their approach and their attitude towards both the operational and the occupational hazards that they face. There are numerous ways in which the insured or operator can mitigate the potential for loss.
"Of key importance is the continued training of pilots at local training academies or establishments such as the renowned Flight Safety International, as well as the maintenance of aircraft by reputable and licensed Aircraft Maintenance Organisations.”
WATCH: What keeps CEO up at night
Mitigation of risk
Paterson told Fin24 that it is important is to have a client base that is risk conscious and that maintain their aircraft well and do not cut corners in order to save costs.
“Insurance companies strive to align themselves with a client base that share similar risk ideologies and who are conscious of the consequences to themselves and others of not controlling the inherent risks in their business.”
“We know our clients and how they conduct themselves, and we choose to avoid areas of what we perceive to be increased risk.”
Paterson said it was important to accept that accidents do happen. “We, like our competitors in the market, lay off a part of the risk to reinsurers,” she said. “Our aviation business is reinsured, as Carly said, into the Global Market, using only A-rated reinsurers who can meet their obligations if we submit a claim.”
