Determinants of Aviation Insurance and Risk Management Strategy

• Main Authors: Yi-Hsin Lin, 林宜欣
• Other Authors: Yu-Hern Chang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/89502941702179698483

博士 === 國立成功大學 === 交通管理學系碩博士班 === 95 === Aviation insurance has become a heavy burden for the airline industry business since September 11, 2001. Most of the literature written for and about the airlines has concentrated on the operation and management of the industry, but very few studies have examined the question of aviation insurance. The purpose of this thesis is to survey the historical data of aviation insurance premiums and investigate expert opinions to identify determinants of aviation insurance and their priority. First, this study adopted literature review and in-depth interview with experts is working in airline and insurance company was conducted to categorize factors of influence aviation insurance. Following this study applied quantitative historical data (1999~2000) and grey relation analysis (GRA) to identify the primary factors influencing ratemaking for aviation insurance premiums. Fuzzy analytic hierarchy process (FAHP) was used to analysis the priority of influencial factors from expert quesionnair. Finally, to compare the outcome between GRA and FAHP to suggest risk management strategies throuth loss experience of individual airlines. Both of results from subjective and objective methods showed that the loss experience and performance of individual airlines were the key elements associated with aviation insurance premiums paid by each airline. After normalizing original loss data, this research used a risk analysis matrix to compare the loss severity against loss frequency of the six airlines and to suggest the best risk management strategies at different loss severity and frequency levels. By identifying and understanding the primary factors influencing ratemaking for aviation insurance, airlines will better understand their relative operational strengths and weaknesses, and further help top management identify areas for further improvement. Knowledge of these factors combined with effective risk management strategies could potentially result in lower premiums and a reduction in expenditures for airline companies.