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Member, Beacon International Group, Ltd.
Aon Benfield Group Ltd., the global reinsurance intermediary and capital adviser of Aon P.L.C., on Monday said it has launched a product to help the charter aircraft industry avoid financial losses due to flight cancellations.
Aircraft On Ground Protect compensates aircraft operators for the financial loss that takes place when their aircraft cannot be used by flight operators for a contracted charter flight, leaving the operator to sub-charter or reposition a replacement aircraft, Aon Benfield said in a statement.
With AOG Protect, operators receive an insurance payout when a flight is cancelled for reasons including mechanical breakdown, accidental damage, crew sickness and midflight diversions from mechanical fault, according to the statement.
AOG Protect will be offered to aircraft owners and operators through Mountfitchet Risk Solutions Ltd. Insurance capacity for the product is being provided by Swiss Re Corporate Solutions Ltd., according to the statement.
“This innovative insurance product enables aircraft owners to more accurately assess the income they will receive when leasing their aircraft to aircraft operators, and in doing so can help them to reduce any volatility in their earnings for a single aircraft or fleet of aircraft,” Kurt Cripps, London-based managing director of Aon Benfield's MGA and program solutions team, said in the statement.