Aviation risk management – the way forward

Regulatory bodies within the London insurance market have become increasingly concerned about the way in which insurance companies manage their risks. Although the introduction by Lloyd’s of the Realistic Disaster Scenario has provided a mechanism for insurance boards, regulators and capital providers to assess risk exposure, the authorities feel much more is needed to avoid the failures of the past. The Financial Services Authority (FSA) has identified the main problems as poor risk assessment, poor risk control and lack of experience. Suki Basi , a director of Russell Group Limited, a provider of exposure management solutions to the aerospace insurance market, calls for a more systematic approach to the issue of risk management within the market.