This article was originally published in the February 2024 issue of Jetstream.
It is no secret that claim costs in the aviation industry have been rising steadily and significantly in the past few years. There are many reasons for this uptick. Some of them include general economic inflation, which has led to considerable increases in consumer prices and interest rates worldwide.
Additionally, supply chain issues have led to repair delays and increased expenses, while new technologies and more expensive materials in next-generation aircraft have contributed to higher repair costs. Furthermore, with respect to liability claims, the judicial environment, particularly in the U.S., has contributed to challenges in the risk of increased verdict amounts and transaction costs involved with defending lawsuits.
Implementing Cost-Control Strategies To Help Our Clients
The challenges our industry faces are real, and no single actor or organization can solve the entirety of the problem. However, as leaders in aviation insurance and with a specialist aviation claims team of more than 50 people worldwide, we are working diligently to reduce (or at least limit) claims costs while ensuring the quality of the work performed remains unmatched.
To achieve those savings, insurance providers must work in partnership with insureds and vendors to capture cost savings where possible without compromising safety or quality of repairs. Across the claims organization at Global, we continually strive to achieve the utmost level of efficiency and effectiveness within all areas of our claims handling strategy.
Targeted Analysis and Training
Everything in the aviation industry centers around a culture of safety. Safety is critical to keeping people secure and unharmed while flying, but a culture of safety and careful attention to it also helps reduce losses.
Continued focus on safety, such as through our SM4 Safety Program, is essential.
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