This report will discuss the future of the aviation industry and the effects of high insurance costs. As the industry cruises through this new age of aviation, the insurance industry must look at several problems facing those in aviation. Survival for the small FBO's is getting harder each day; the threat of financial disruption is real when it comes to lawsuits. General aviation may be forced to change its way of doing business and become more like the military and commercial airlines. There is a great hope that society will change their attitude towards the aviation industry and the litigation that surrounds the industry. .
Insurance and the Future of Aviation.
The aviation industry, as it is known today, has grown into a set of different industries. Modern aircraft range from military, commercial, and general aviation. Aviation has come a long way the last 100 years. The industry is still developing, with growth comes problems that must be solved before the industry can go to the next level. As the industry enters into a new era of aviation, the insurance industry must look at several problems that face the aviation industry. Legal concerns, in many cases, are influenced by our society. The court system plays a large role, by decisions that are passed down. It is rare when an aviation case goes to court, because insurance agencies generally know they will not win when the jury hears the case. It is too easy to prove pilot negligence. Also, when they do go to court, they very seldom mount a defense due to the unreasonable verdicts, and ridiculous awards. These practices have forced aircraft owners to stay away from new policies and let their insurance coverage lapse. Aircraft owners pay three to five times the amount for adequate liability coverage than their counterparts elsewhere in the world. Survival for the small business operators is getting harder each day due to the General Aviation Revitalization Act (GARA); the threat of financial devastation is real when it comes to lawsuits.
