The document is a presentation given by James Coventry of Willis Towers Watson at an aviation safety training seminar for Vietnam Airlines Group. Coventry discusses the importance of considering both safety and risk management. He notes that direct costs of accidents can be high, in the billions of dollars, but indirect costs are even higher, in the trillions. Coventry urges employees to play a role in identifying, analyzing, controlling and monitoring risks to help reduce risk exposure and ensure the success of Vietnam Airlines Group.
WELCOME.
JC THEN JR. INTRODUCE SELF
SO TODAY WE WILL FOCUS ON
IDEA OF RISK
ROLE OF BROKER
OUTLINE OF COVERAGES – BASE LEVEL TO BUILD ON THROUGHOUT THE WEEK
BRIEFLY DISCUSS HOW POLICIES PAY IN A LOSS
WHAT DO INSURERS WANT TO KNOW ABOUT YOU SO THAT WE CAN NEGOTIATE YOU A GOOD DEAL. HOW YOU CAN PROMOTE YOURSELF.
HOW WE TAKE YOUR RISK TO MARKET
EXPLAIN A PRICING PRINCIPLE UNIQUE TO THE AVIATION MARKET
SHARE OUR THROUGHTS ON FACTORS INFLUEINCING PRICING
STOP ANY TIME FOR GENERAL DISCUSSION + ANY QUESTIONS - THIS SHOULD TAKE SOMEWHERE BETWEEN 1HR30 – 1HR45
FIRST WE WILL FOCUS ON
WHAT EXACTLY IS RISK?
WHAT ARE YOUR RISKS AS AN AIRLINE?
WHAT CAN YOU DO TO REDUCE YOUR RISK EXPOSURE?
AND WE WILL TOCUH BRIEFLY ON HOW YOU DECIDE YOUR RISK APPETITE
FIRST OF ALL LET’S LOOK AT WHAT RISK ACTUALLY IS
I WILL GIVE YOU 3 DICTIONARY DEFINITIONS
1) RISK IS A SITUATION INVOLVING EXPOSURE TO DANGER
2) RISK IS THE POSSIBILITY THAT SOMETHING UNPLEASANT OR UNWELCOME WILL HAPPEN
3) RISK IS A POSSIBILITY OF HARM OR DAMAGE AGAINST WHICH SOMETHING IS INSURED
FIRST OF ALL LET’S LOOK AT WHAT RISK ACTUALLY IS
I WILL GIVE YOU 3 DICTIONARY DEFINITIONS
1) RISK IS A SITUATION INVOLVING EXPOSURE TO DANGER
2) RISK IS THE POSSIBILITY THAT SOMETHING UNPLEASANT OR UNWELCOME WILL HAPPEN
3) RISK IS A POSSIBILITY OF HARM OR DAMAGE AGAINST WHICH SOMETHING IS INSURED
FIRST OF ALL LET’S LOOK AT WHAT RISK ACTUALLY IS
I WILL GIVE YOU 3 DICTIONARY DEFINITIONS
1) RISK IS A SITUATION INVOLVING EXPOSURE TO DANGER
2) RISK IS THE POSSIBILITY THAT SOMETHING UNPLEASANT OR UNWELCOME WILL HAPPEN
3) RISK IS A POSSIBILITY OF HARM OR DAMAGE AGAINST WHICH SOMETHING IS INSURED
FIRST OF ALL LET’S LOOK AT WHAT RISK ACTUALLY IS
I WILL GIVE YOU 3 DICTIONARY DEFINITIONS
1) RISK IS A SITUATION INVOLVING EXPOSURE TO DANGER
2) RISK IS THE POSSIBILITY THAT SOMETHING UNPLEASANT OR UNWELCOME WILL HAPPEN
3) RISK IS A POSSIBILITY OF HARM OR DAMAGE AGAINST WHICH SOMETHING IS INSURED
FIRST OF ALL LET’S LOOK AT WHAT RISK ACTUALLY IS
I WILL GIVE YOU 3 DICTIONARY DEFINITIONS
1) RISK IS A SITUATION INVOLVING EXPOSURE TO DANGER
2) RISK IS THE POSSIBILITY THAT SOMETHING UNPLEASANT OR UNWELCOME WILL HAPPEN
3) RISK IS A POSSIBILITY OF HARM OR DAMAGE AGAINST WHICH SOMETHING IS INSURED
EACH AIRLINE WILL HAVE ITS OWN RISK APPETITE. MAY BE RISK AVERSE OR WILLING TO ACCEPT MORE ON THEIR BALANCE SHEET.
DEFINITION OF RISK APPETITE IS the amount and type of risk that an organisation is willing to take in order to meet their strategic objectives.
DEFINITION OF RISK PROFILE IS A risk profile is an evaluation of an individual or organization's willingness to take risks, as well as the threats to which an organization is exposed
SO INSURANCE IS NEEDED AND I WILL THINK ABOUT…
MY RISK APPETITE. DO YOU HAVE ENOUGH TO PAY FOR A LOSS? WILL YOUR BUSINESS STILL BE PROFITABLE?
WHAT WILL YOUR CEO SAY IF YOU CRASH AN AIRCRAFT? HE WILL LIKELY ASK – HOW MUCH INSURANCE DO WE HAVE…. IS THAT THE MAXIMUM WE COULD HAVE BOUGHT?
RISK PROFILE. WHAT AIRCRAFT DO I HAVE? AM I FLYING R44 HELICOPTERS? OR AIRBUS A380s? HAVE I HAD PROBLEMS/ACCIDENTS BEFORE?
AM I PREPARED/ABLE TO PAY THE PREMIUM REQUIRED?
EACH AIRLINE WILL HAVE ITS OWN RISK APPETITE. MAY BE RISK AVERSE OR WILLING TO ACCEPT MORE ON THEIR BALANCE SHEET.
DEFINITION OF RISK APPETITE IS the amount and type of risk that an organisation is willing to take in order to meet their strategic objectives.
DEFINITION OF RISK PROFILE IS A risk profile is an evaluation of an individual or organization's willingness to take risks, as well as the threats to which an organization is exposed
SO INSURANCE IS NEEDED AND I WILL THINK ABOUT…
MY RISK APPETITE. DO YOU HAVE ENOUGH TO PAY FOR A LOSS? WILL YOUR BUSINESS STILL BE PROFITABLE?
WHAT WILL YOUR CEO SAY IF YOU CRASH AN AIRCRAFT? HE WILL LIKELY ASK – HOW MUCH INSURANCE DO WE HAVE…. IS THAT THE MAXIMUM WE COULD HAVE BOUGHT?
RISK PROFILE. WHAT AIRCRAFT DO I HAVE? AM I FLYING R44 HELICOPTERS? OR AIRBUS A380s? HAVE I HAD PROBLEMS/ACCIDENTS BEFORE?
AM I PREPARED/ABLE TO PAY THE PREMIUM REQUIRED?
SO. WEVE MADE UP OUR MIND…. AND COME TO THE BEST BROKER IN TOWN EVEN THOUGH OUR LOGO LOOKS LIKE SPACE INVADERS….
THIS AFTERNOON WE WILL TALK IN PARTICULAR ABOUT THESE 5.
WE HAVE ALREADY MENTIONED ABOUT THE RISK YOU FACE AND HOW THESE ARE IDENTIFIED
AND I WILL NOW PASS OVER TO PETER WHO WILL TALK TO YOU ABOUT
WHAT DRIVES THE PURCHASE OF INSURACE
YOUR COVERAGE AND POLICY DESGIN
LETS NOW MOVE ON TO WHAT YOU CAN CONTROL AND HOW YOU CAN MAKE YOUR RISK THE MOST APPEALING TO INSURERS.
ATTRITIONAL LOSSES ARE THOSE TYPICALLY UNDER $10M. THEY ACCOUNT FOR $450M OF LOSSES EACH YEAR AND ARE CONSIDERED ‘PREDICTABLE’