Aviation Insurance

Aviation Insurance deals with insurance of aircraft and the risks involved in aviation. Aviation Insurance originates to the early years of the twentieth Century. The first aviation insurance policy is believed to be written by Lloyd's of London in the year 1911. During those times, aviation polices were underwritten by Marine Underwriters. The first specialist aviation underwriters emerged in 1924.

The Warsaw convention was signed in the year 1929. The convention was an agreement to establish terms, conditions and limitations of liability for carriage by air.  

Realising the need for a specialist industry sector, the International Union of Marine Insurance (IUMI) first set up an Aviation Committee. In 1933, the International Union of Aviation Insurers (IUAI) was created, made up of eight European aviation insurance companies and pools.

The London insurance market continues to be the largest single centre for aviation insurance. The market is made up of the traditional Lloyd's of London syndicates and numerous other traditional insurance markets. Throughout the rest of the world there are national markets established in various countries, this is dependent on the aviation activity within each country, the US has a large percentage of the world's general aviation fleet and has a large established market. No single insurer has the resources to retain a risk the size of a major airline, or even a substantial proportion of such a risk. The catastrophic nature of aviation insurance can be measured in the number of losses that have cost insurers hundreds of millions of dollars.  Most airlines arrange "fleet policies" to cover all aircraft they own or operate.

Aviation Industry Segments
  • Civil
    • Airlines
    • General Aviation
      • Commercial
      • Corporate
      • Business
      • Personal / Private
      • Sports / Recreational
      • Instructional
      • Experimental
      • Aerobatics
      • Transport-based
      • Non-Transport-based
  • Military
Aviation Insurance Market 
(Buyer Segments)
  • Airlines
  • General Aviation - RW & FW
  • Product / Manufacturers
  • Space
  • Other Aviation Liability
Aviation Segments based on Coverage
  • Hull / Spares / Liability
  • Hull Deductible
  • Hull War
  • Excess War Liability
  • Risk Excess
  • Retrocession