Czech Airlines has selected a new insurance broker in a multi-round tender won by the consortium of Renomia and JLT and the airline will save up to CZK 100m annually on insurance premiums, almost 50% of the amount it now pays. Major saving on insurance premiums resulted not only from the global trend on the insurance markets, where drops in premiums have been expected, but especially from the overall high safety of the flight operations of Czech Airlines. Moreover, the new insurance broker is able to fully utilise this competitive advantage on the insurance and reinsurance markets.
“The safety or risk rate of aviation industry and individual airline carriers has a major impact on airline insurance rates. Simply stated, the safer the airline flies, the less it pays on insurance premiums,” explained Franti?ek ?’r, Executive Director of the Supplier Services Management Section. “We expect the new broker will be able to benefit from the excellent performance of our flight, ground, and technical personnel, which is the guarantee of the high safety standards of ?SA,” added ?’r.
The new broker will supply ?SA with a complete insurance package covering all risks from flight operations and which is required by international and domestic regulations, e.g., not only passenger liability insurance, their baggage, goods, or postal insurance, but also coverage against possible damages from the operation of aircraft incurred by third parties. The broker will also provide insurance on ?SA’s real property and vehicle fleet, and other forms of insurance.
In the tender, four major brokerage companies active in the airline industry were short listed, including the current ?SA broker, Willis. The selection of the consortium of Renomia and JLT was partially influenced by the fact that the JLT is a broker for Air France, and thus their offer takes into consideration joining the insurance programmes of both airlines. The commission of Renomia and JLT will depend on savings on insurance premiums.