Findings and Conclusions: Towards Sustainable Insurance of Aviation War and Terrorism Risks
The object of this book has been to explore the central issues underlying the perennial problem of providing the air transport industry with adequate and sustainable insurance coverage for aviation war and terrorism risks. We began by describing the manner in which the conventional insurance industry has been used as the primary risk management tool for addressing the massive economic repercussions of such risks upon the air transport industry. We also made an effort to identify the fundamental reasons why conventional insurance markets covering such large catastrophic risks “fail” in the period immediately following the occurrence of an extreme insured event. We then analyzed various complementary solutions that have been advanced for the purpose of enhancing the ability of the conventional insurance industry to provide coverage for such risks as well as alternative solutions advanced and even implemented as substitutes for conventional insurance coverage. Below, we conclude by setting out some of the major findings and conclusions that were made during this research.
KeywordsCash Flow Loss Distribution Risk Financing Probable Maximum Loss Contingent Capital
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