Experts ‘Views about Significant Factors of Aviation Insurance

摘要

Since September 11, 2001 aviation insurance premiums have become a heavy burden forrnoperation cost of airlines. Unlike other forms of insurance, aviation insurance contracts arerncustomized to suit specific needs and its premium rates are highly correlated with an airline'srnprevious experiences and the current economic cycle. Furthermore, aviation premiums are notrnstandard and are to a large degree based upon judgment.rnFirst, this study adopted literature review and in-depth interview with experts is working inrnairline and insurance company was conducted to categorize factors of influence aviation insurance.rnFollowing fuzzy analytic hierarchy process (FAHP) was used to analysis the priority of influentialrnfactors from expert questionnaire.rnThe result showed that the loss experience and performance of individual airlines were the keyrnelements associated with aviation insurance premiums paid by each airline. By identifying andrnunderstanding the primary factors influencing ratemaking for aviation insurance, airlines will betterrnunderstand their relative operational strengths and weaknesses, and further help top managementrnidentify areas for further improvement. Knowledge of these factors could potentially result in lowerrnpremiums and a reduction in expenditures for airline companies.