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REINSURANCE

Reinsurance is insurance for an insurance company. And there is evidence of such transactions dating back to 1799, so this is nothing new. For 2010, the total U.S. reinsurance premium was estimated to be $118.5 billion.

As part of their responsibilities, insurance companies executives , and their actuaries, analyze the types of risks and geographic concentrations of such and make a financial calculation as to the amount of risk and premium they wish to hold “net” to themselves and then transfer (or sell) that excess portion of exposure to loss and corresponding premium to reinsurers.

Once the insurance company has made that determination they then enter into a reinsurance agreement (referred to as a treaty) with one or more reinsurers who then assume, under contract, that portion of exposure to loss either on an excess of loss (above a certain dollar amount) or pre-agreed upon percentage of each risk and each premium dollar.

Reinsurer’s are subject to insurance regulation just as are the insurance company’s they reinsure.

Every responsible insurance company strengthens its balance sheet and “spreads” its risk by purchasing reinsurance.

Before commencing operations, AAIRRG successful concluded a reinsurance treaty with many of the leading aviation reinsurers in the world. Each is an highly-rated “A” reinsurer with a combined policyholder surplus (net worth) in excess of $88.1 billion.

AAIRRG retains the first $500,000 of any one claim and all amounts above that are fully reinsured up to the each of the respective policy limits.

Learn more about reinsurance

Reinsurance Explained

Do you have questions? Give our experts a call at 707-963-2400 or send an email to info@aairrg.com.

05/23/13	FAA Warns On Improperly Installed 737 Classic Hose Clamps Clamps improperly installed during maintenance visits have been tied to at least three serious in-service fire and smoke incidents on Boeing 737 Classics, prompting the FAA to warn operators and encourage compliance with a Boeing-suggested fix.
05/15/13	FAA Bonuses and the Sequester Airline passengers were plenty angry last month when the Federal Aviation Administration chose to impose flight delays rather than accept modest and more sensible budget cuts. Those passengers will now be thrilled to learn what the FAA was funding instead of air-traffic control.
05/10/13	American Airlines, subsidiaries to pay $24.9 million to settle FAA claims American Airlines and three subsidiaries have agreed to pay $24.9 million to the Federal Aviation Administration to settle more than $162 million in claims that the agency had lodged against the airline company.
05/07/13	Gov’t watchdog: FAA safety oversight of repair stations servicing US airlines is ineffective The government’s oversight of hundreds of domestic and overseas repair stations that service U.S. airliners is ineffective and doesn’t target the factors most likely to present safety risks, the Department of Transportation’s inspector general said Monday.
05/01/13	Bill Looks to Require Second Cockpit Door Rep. Mike Fitzpatrick (R-PA.) on Monday announced the Saracini Aviation Safety Act, which would require airlines to install a secondary cockpit barrier on commercial airplanes to protect pilots and passengers from 9/11 style airliner attacks.
04/26/13	A Back Seat for Safety at the FAA If one thing is clear after this week’s National Transportation Safety Board hearings on the certification of the Boeing 787’s lithium-ion battery, it is that the Federal Aviation Administration and the industry it regulates share a cozy relationship that sometimes takes a front seat to safety.
04/22/13	Airlines ask court to block FAA furloughs The nation's airlines asked a federal court on Friday to stop the imminent furlough of air traffic controllers, saying the cuts could delay 6,700 flights daily with passengers waiting up to four hours in some cases.
04/08/13	Educating Congress on the MRO Industry The Aeronautical Repair Station Association (ARSA) told Congress in a letter about the significant economic impact the aviation maintenance industry has in communities throughout the country and urged lawmakers to keep the sector’s contributions and safety record in mind when considering legislative proposals.
04/03/13	FAA Should Shut Most Air-Traffic Radar Rooms, Study Says The U.S. Federal Aviation Administration could save $1.7 billion up front and about $1 billion more annually by closing 187 air-traffic radar rooms and building consolidated centers to control flights over large regions, a study found.
04/02/13	TSA Ban On MROs Impacting Airline Business A backlog of foreign repair station applications created by a byzantine U.S. congressional mandate is forcing airlines to reconsider both expansion and contract maintenance strategies, because desired stations don't have FAA-approved shops to work on U.S.-registered aircraft.
03/19/13	Many Small Plane Crashes Avoidable With Better Pilot Training, NTSB Says For private plane pilots, their final terrifying, twisting view of earth that leads to a crash is all too common and devastating, but that could be avoided with proper training, the National Transportation Safety Board tells ABC News.
03/13/13	U.S. Backs Boeing Plan for Testing 787 Battery Boeing achieved a major milestone on Tuesday as the Federal Aviation Administration approved its plan to test fixes for the battery problems that have grounded its 787 jets since mid-January.
02/21/13	Boeing seeks FAA’s OK for permanent 787 battery fix A small team of top machinists at Boeing’s Auburn plant is building high-strength containment boxes for the lithium-ion batteries on the 787 as part of a redesign to get the planes flying again as soon as April.
02/13/13	FAA and industry Are advancing the Airline Safety Act, but challenges remain to achieve its full measure On January 31, 2013, the Department of Transportation Office of the Inspector General issued a report on the Federal Aviation Administration’s (FAA) progress and challenges in implementing the Airline Safety and FAA Extension Act of 2010 entitled FAA and Industry Are Advancing the Airline Safety Act, but Challenges Remain To Achieve Its Full Measure, Report No. AV-2013-037 (January 31, 2013).
02/06/13	FAA opposes airline regulation requiring toddler safety seats A battle brewing between the National Transportation Safety Board and the FAA over whether to create a rule requiring that children under the age of two fly in child safety seats could soon affect how your kids fly.
02/05/13	FAA mandates safety checks for older Piper planes The Federal Aviation Administration is requiring inspections on tens of thousands of older model Piper airplanes to check cables that control tail surfaces.
01/23/13	FAA: Helicopters and Ice Don’t Mix Less than two months after two possible weather-related fatal crashes of EMS helicopters in Illinois and Iowa, the FAA has issued a Special Airworthiness Information Bulletin covering recommendations for rotorcraft flying into snowy or icy conditions.
01/11/13	Airline crash data group ranks world's safest airlines If you're afraid of flying, you may want to book an Asian or Middle East carrier rather a U.S. airline. That's at least according to a recent report from a website that monitors plane crashes around the world.
01/08/13	In response to ARSA protest, FAA reverses maintenance duty time legal interpretation In a major victory for the aviation industry, on Dec. 26, 2012, the Federal Aviation Administration (FAA) withdrew its faulty legal interpretation of maintenance duty time limitations prescribed in Title 14 Code of Federal Regulations section 121.377.
01/07/13	NTSB Investigating Japan Airlines Dreamliner Fire The National Transportation Safety Board (NTSB) is investigating the cause of a fire in the underbelly of a Japan Airlines Boeing 787 Dreamliner at Boston's Logan International Airport on Monday. According to airport officials, airline mechanics reported seeing smoke shortly after passengers exited the plane.
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Notice: AAIRRG is a licensed insurance company in the State of Montana. AAIRRG operates in 42 states under the authority of a Federal Law which requires registration with each state in which it wishes to operate. You can ascertain your state’s status by visiting www.aairrg.com/states. If you should find that your state is not included, AAIRRG will register upon your request to become an insured. This offer is void in any state or jurisdiction in which it would violate their rules or regulations.

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