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Insurance and the Future of AviationAnalysis of Issues in the Aviation IndustrySouthern Illinois University CarbondaleThis report will discuss the future of the aviation industry and the effects of high insurance cost As the industry enters into the millennium the insurance industry must look at several problems that also face the aviation industry Survival for the small FBOs is getting harder each day the threat of financial devastation 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 One can only hope that society will change their attitude towards the aviation industry and the litigation that surrounds the industry We all hope for a positive future for the communityInsurance and the Future of AviationThe aviation industry as it is known today has grown into a set of definable industries Modern aircraft range from military to commercial airlines to the most diverse group 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 the millennium the insurance industry must look at several problems that face the aviation industry Legal concerns in many cases theyre influenced by our society The court system plays a big part by their decisions that are passed down Its rare when an aviation case goes to court because insurance agencies know theyll lose when the jury hears the case Its just too easy to prove pilot negligence most aviation accidents result from pilot error Also when they do go to court they very seldom mount a defense due to the unreasonable verdicts and ridiculous awards These practices has 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
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