Aviation industry ‘ripe for captive insurance’
AGAINST A BACKDROP of experiencing
low rates for a long period of time,
the aviation market is well suited for
alternative risk transfer solutions such
as captive insurance.
This is according to Alex Gedge,
business development and captives
executive at JLT Group, who suggested
the aviation business—with its zero
tolerance to safety violations and
potential fluctuations of market
premiums—could benefit from such
technologies such as unmanned air
“This gives a chance to build up data,
and a loss record, without exposing
your balance sheet to unnecessary
risk,” she explained.
There are also benefits to be made to
an aviation company’s bottom line.
“Cancellation cover, baggage
insurance, travel insurance can
generate huge profits for airlines, with
claims that some budget airlines make
as much as £2.6 billion ($3.5 billion) in
add-ons,” said Gedge.
“By utilising a captive to offer
insurance to customers, they
can benefit from insurance, and
companies can diversify their captives
as well as generate some additional
One of the largest benefits in Gedge’s
eyes, however, is the data that gives a
more accurate picture of where claims
are coming from.
Captives could also play a role in
an aviation company’s employee
benefit programmes, cutting the
time and expenses involved through
“The idea of self-retaining risk is
not new, and with the sector’s strong
stance on safety monitoring and risk
management data, it is in a strong
position to benefit from captive
insurance,” Gedge concluded.
JLT’s aviation team provides
insurance broking services to all areas
of the aviation industry including
airlines, aerospace infrastructure,
general aviation and space. l
“Where the aviation market has been
experiencing low rates for a long time,
taking dependency out of the market
can smooth the increases many
aviation brokers are anticipating.
“This can be particularly valuable
where there is uncertainty over airfares
as it can add more certainty to your
insurance spending,” said Gedge.
She suggested that captives may
be able to step in where there is less
appetite in the traditional insurance
market, for example with new
Connecticut Captive Insurance Association appoints eight
THE CONNECTICUT Captive Insurance
Association (CCIA) has appointed eight
new members to its board of directors.
The members include Pam Ferrandino,
vice president, business development,
Gallagher Bassett; Mersini Keller, senior
manager, business tax services, KPMG;
George Levine, director, advisory, KPMG;
Brendan Maher, professor, UConn School
of Law; William Murphy, SVP, alternative
Hillswick Asset Management; and
Dawne Ware, director, Marcum.
“We appreciate the volunteer spirit
exemplified by these consummate
professionals who are very experienced
in the captive field,” said Stephen
DiCenso, president of CCIA.
“The captive momentum in CT is
growing! Please join me in welcoming
them to CCIA.” l
markets, Arch Insurance Group; Dave
Raikowski, consulting actuary, Actuarial
& Technical Solutions; Frank Tedesco,
director, marketing and client relations,
“We appreciate the volunteer
spirit exemplified by these
iStock Photo / Alija