Finance, Taxes, Insurance
Aon Warns Asian Airlines Against Resorting to ‘Cheap Cover’
Aviation industry’s low margins mean higher risk from uninsured losses.

Calling 2017 another benign year for aviation claims in the Asia-Pacific region, insurance broker Aon nevertheless advised clients to resist resorting to so-called “cheap cover” in an effort to trim costs in a competitive environment so highly populated by low-fare carriers. The company noted that low-margin industries such as aviation carry a greater potential than most to feel the drastic effects of uninsured losses. On a positive note, last year the company said it saw growing maturity in the industry toward insurance purchasing, as an increasing number of clients procured coverage for previously uninsured risks such as cyber security.