IATA's Industry Risk Management and Insurance objective is to represent the interests of its member airlines on aviation insurance matters and provide insurance strategies and risk management solutions aimed at containing overall risk exposure.
Industry Activities
Guidance and advice on IATA's industry insurance activities is provided by the Risk & Insurance Management Working Group(RIM WG), which reports to the IATA Financial Committee. The panel is made up of ten risk and/or insurance managers from member airlines, representing different geographical regions. The RIM WG meets annually in the spring and this meeting is open to all risk management and insurance managers of IATA's member airlines. Our Industry Risk Management and Insurance website provides further information on ongoing activities that benefit member airlines.
Current Issues
Since September 11, 2001, when aviation insurers issued a notice of cancellation for third party war risk cover that threatened to shut down the aviation industry, airlines and other associated service providers struggled to obtain cover for third-party war risks with acceptable policy conditions and at affordable rates.
In October 2003, the aviation underwriting community announced its intention to publish new war risk exclusion clauses that would effectively exclude passenger, third-party, hull war and spares cover in the event of an incident involving the hostile use of radioactive material (e.g. dirty bombs), electromagnetic pulse devices and chemical or biological materials. That action was postponed pending the review of such clauses by the Aviation Insurance Clauses Group (AICG). In early August 2006, the exclusion clause and a limited "write back" was published by AICG, effectively allowing underwriters to use them. Aviation insurance renewals occur for the most part in the fourth quarter of the year. The outcome is unknown as of this date.
Industry Events
The annual Airline Insurance & Risk Management Conference is a highlight in the aviation insurance calendar, bringing together a number of key players including airline risk and insurance managers, aviation underwriters, brokers, lawyers and others. This two-day rendezvous looks at current issues of concern to the industry and allows its participants an invaluable opportunity to meet and exchange information with others in the world of aviation insurance. AIR 2007 will take place in Montreal 16 to 18 April at the Palais des Congrés.