Aon Benfield has rolled out a new kind of insurance coverage that it suggested could spur business expansion in private charter aviation.
Ostensibly, the coverage is designed for SHY Aviation, an international aircraft charter company. A specialist syndicate within Lloyd’s of London is providing insurance capacity, Aon Benfield said.
Specifically, the policy protects SHY when its charter flights have to be canceled because of mechanical problems, lack of flight crew, bad weather and refueling delays, Aon Benfield said. The plan offers coverage for 130 percent of the charter contract value. With that in hand, SHY can offer clients an aircraft that is the same or better, after the original flight is canceled.
Aon Benfield is a global reinsurance intermediary (also part of Aon plc.), and the new coverage comes out of its Aon Benfield ReSolutions division.
Kurt Cripps, a broker and product leader within Aon Benfield ReSolutions arm, explained to Carrier Management in an email that the coverage was designed “in response to a unique client challenge.” But, he noted, it opens the door to broader expansion for private charter aviation coverage.
“Our growth in this sector will be a byproduct of the success of this product and the success of our client,” Cripps said. “While having been structured to meet the specific needs of SHY Aviation, the product could be customized to meet the needs of other operators in this sector.”
In a statement issued with the policy announcement, Cripps said it could also help the business sector itself expand.
“We believe that this product will help to drive the growth of the private charter aviation sector,” Cripps said.
Source: Aon Benfield