Online risk profile: computer crime
Date: May 03, 2006Source: flightglobal.com
The Airline Risk Management Survey, a new piece of research commissioned by Airline Business and leading airline insurance broker Aon, is the first detailed study into airline risk management issues
Airlines are spending at least $8.36 billion a year on risk management, with around 70% – or $5.86 billion – going on insurance premiums, according to new research into airline risk management trends. Insurance premiums fell significantly in 2005, but despite the expectation within the risk management community that this downward trend will continue in 2006, albeit less markedly, there is considerable anxiety about the cost of premiums. Some 60% of respondents highlight it as one of the most important insurance industry issues affecting the aviation business. Risk experts are linking this concern to the fragility of airline finances, plus newly perceived business and terrorism risks.
The first detailed snapshot of airline risk management issues, commissioned by Airline Business in association with insurance broking firm Aon, reveals that the legacy of the terror attacks in the USA on 11 September 2001 continues to have a significant impact on risk management. Aviation premiums are on average 15.5% higher than pre-9/11 levels and war terrorism insurance and restrictions on cover are the major risk issues facing the airlines, according to nearly a third of risk managers surveyed in the study.
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