With possible seating capacity of up to 850 people, the Airbus A380 has increased the aviation insurance industry’s hull and liability exposure, according to an article in the latest issue of Exposure, published by GE Insurance Solutions.
The A380 is a new aircraft with literally no claims history. Consequently, airlines, manufacturers and their insurers all need to understand how the A380 shifts exposure patterns said authors Rudolf Flunger, global aviation leader; Wolfgang Vogel, aviation pricing actuary; and Carsten Nawrath, aviation underwriter.
The size of the A380 creates a much greater probability for large losses above $500 million, according to the authors. Emphasis was placed on the fact that the article did not make assumptions about the safety characteristics of the aircraft or its potential accident rates, but that the intention was to discuss the exposure that the A380 aircraft adds to the aviation insurance industry.
To read the entire article, visit: http://www.geinsurancesolutions.com/erccorporate/inst/pb/ex/index.htm. (See “Airbus A380 – A New Era in Aviation Insurance”.)
Source: GE Insurance Solutions.
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