What are aviation insurance companies looking for?

In June, 2006 Baldwin's safety programs were reviewed and are supported by three of the largest aviation insurance providers in the world. Insurance companies look favorably on flight organizations that maintain a robust safety program. Baldwin clients have reported experiencing "significant" savings in their insurance renewals. An effective safety program includes:

A Safety Management Program, including SMS, that is accepted and operated by highly qualified and motivated personnel. Elements of such a program include:

a. Ongoing safety surveys
b. Safety meetings
c. Methods for detecting hazards
d. Use of best practices
e. On-site reviews and/or audits
f. Process of monitoring safety BEFORE an incident/accident occurs.

An Operations Manual and Emergency Response Plan - complete, current, and approved by the company's executive management - establishing standards and parameters that meet or exceed FAA air carrier or industry criteria (the higher the standards, the safer the operation is assumed to be);

A training program that's continuous, organized and documented to attain and maintain optimum pilot and maintenance proficiency; and

An effective maintenance program that will ensure a safe, airworthy and problem-free aircraft for company use.

Insurers advise owners and operators to “look harder” to reduce rates. Insurance rate spikes in 2001 struck fear in the hearts of flight departments everywhere. Although the rates seem to have stabilized, insurers continue to advise aircraft owners and operators to look harder to reduce insurance costs. “These may include maintenance of higher safety standards, including annual independent safety audits and a higher level of aircrew training. And while such steps might not qualify an applicant for a lower premium, they could make the difference in whether an insurer is even willing to quote a rate. In a hard market, insurers will be less likely even to offer a quote, or even to renew a policy, for insurance applicants who do not meet higher standards of safety and training, or who are deemed high risk.”

- Aviation International News, November 2001