Aviation war risk insurance and its impacts on US passenger aviation

Seguro aeronáutico contra risco de guerra e impactos na aviação comercial Norte Americana

In the aftermath of the September 11 attacks, the United States government became a supplier of aviation war risk (AWR) insurance for airliners, as well as a reinsurer for commercial insurance. Here the authors quantitatively examine the consequences of these offerings. The AWR offering is primarily needed for widebody and jumbo jets; smaller aircraft like the Embraer 195 are far less capable of creating damage in excess of the $50 million AWR deductible. Widebody and jumbo jets are also the only aircraft capable of creating long-term government liability through its commercial reinsurance. The US government's assumed risk through its insurance involvement can reach into the hundreds of billions of dollars. This risk level can create a perceived financial incentive for government to force airline passengers through invasive and dangerous search procedures. Thus, governmental insurance offerings can create a conflict of interest that infringes air passengers' civil liberties.

• Record URL:
  https://doi.org/10.1590/S2238-10312013000200014
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/22381031
• Supplemental Notes:
  • Abstract used with permission of the Brazilian Transportation Planning Society (BTPS)
• Authors:
  • Freitas, Paul J
• Publication Date: 2013-4

Language

• English
• Portuguese

Media Info

• Media Type: Digital/other
• Features: Figures; References; Tables;
• Pagination: pp 268-283
• Serial:
  • Journal of Transport Literature
  • Volume: 7
  • Issue Number: 2
  • Publisher: Brazilian Transport Planning Society
  • ISSN: 2238-1031
  • Serial URL: http://www.scielo.br/scielo.php?script=sci_serial&pid=2238-1031&lng=en&nrm=iso

Subject/Index Terms

• TRT Terms: Airlines; Conflict of interest; Governments; Insurance; Risk
• Identifier Terms: Terrorist attacks of September 11, 2001
• Geographic Terms: United States
• Subject Areas: Aviation; Finance; Security and Emergencies; I70: Traffic and Transport;

Filing Info

• Accession Number: 01492320
• Record Type: Publication
• Files: TRIS
• Created Date: Aug 20 2013 11:36PM