THE FUTURE OF AVIATION AND PERSONAL ACCIDENT INSURANCE
AXIS INSIGHTS
AXIS Insights - The Future of Aviation and Personal Accident Insurance
At AXIS International Accident & Health, we are always thinking about the future.
With passengers seeking more sustainable options and private companies looking to the stars, we asked Paul Fillbrook about what the future could hold and where aviation might take us next.
Sustainable Aviation Fuel (SAF)
The shift to sustainable aviation fuel (SAF), derived from things such as waste cooking oil and municipal waste, could be one way to bring back passengers. But this move is facing hiccups too. SAF companies saw delays in production due to the pandemic. Though waste and feedstocks are not costly, SAF requires advanced and expensive technology to turn these materials into fuel to power aircraft.
Electric Vertical Take-off and Landing (eVTOL)
We have already seen electric-powered flights, particular eVTOL (electric vertical take-off and landing), emerging in the motor sports world. It’s only a matter of time before this becomes commercially available as an even more sustainable alternative.
Space Tourism
We also can’t ignore space tourism when we discuss the future of aviation. Several high profile and successful flights have recently been made to pave the way here. Space travel for those of us who are not astronauts could become a real possibility in the future as costs should eventually come down.
The simple answer is that it must. The travelling public, scientists and politicians are insisting that the industry cleans up its act. Before the pandemic, aviation was responsible for 2-3% of overall global emissions1. The International Air Transport Association are forecasting significant growth in air travel throughout the 2020s so this number simply isn’t sustainable, especially for the growing number of airline passengers who are looking to support sustainable brands that align with their values.
The transition to net-zero flying by the middle of this century is a priority for many in the aviation industry. Older planes will likely not be brought back into service with new orders only made for aircraft that run on SAF. This should not only help create a sustainable future but also bring the aviation industry back to financial resilience and competition which is arguably essential for the long-term recovery of the aviation industry as a whole.
1 https://www.forbes.com/sites/worldeconomicforum/2021/07/02/the-future-of-flying-is-closer-than-ever-sustainable-fuel-is-the-key/
To address the environmental and social concerns, there’s been significant investment in the electrification of aircraft systems. New electric or hybrid aircraft designs are becoming more and more commonplace.
Many private companies are looking to the stars with a view to making the most of technological evolution to take tourists into space (or at least to the edge of space). Space tourism is a growing market expected to be worth at least $3 billion by 20302. From Richard Branson’s Virgin Galactic to Elon Musk’s SpaceX, tests have already begun to bring passengers closer to space. Currently, space travel is only available to the extremely wealthy and private researchers. But, with attempts to create affordable and reusable rocket technology, ordinary citizens may also be able to take advantage of this opportunity in the future.
2 https://www.space.com/future-of-space-tourism-op-ed
The insurance industry will evolve. However, there may be an expensive learning curve ahead without a government backed insurance scheme to help.
AXIS remains committed to the aviation industry and its insurance needs. We provide a comprehensive range of products that meet those needs. Our appetite is clear and focused. We have adequate capacity to continue to grow in this sector. We have both Lloyd’s and company paper and an experienced team of underwriters who provide high levels of service.
Paul Fillbrook is a Senior Underwriter, International Accident & Health, for AXIS. For the past 24 years he has specialized in providing Personal Accident and Loss of License insurance solutions for both general aviation and airline risks in the London market.
Paul FillbrookEmail: paul.fillbrook@axiscapital.comPhone: +44 2078773968
This material is for general information, education and discussion purposes only. Statements contained herein are not an endorsement of any particular product or service and are not professional or legal advice of AXIS or its affiliates. AXIS makes no representations as to the accuracy or completeness of the information and is under no obligation to update or revise the information as a result of new information, research or future events. AXIS assumes no liability by reason of the information within this material.
