Aviation Insurance

According to the United States Bureau of Air Commerce figures there were only 9,152 licensed aircraft in the United States as of January 1, 1938 and of this number the scheduled airlines operated 386. The values of these planes range from less than one thousand dollars up to three-quarters of a million dollars, while the uses to which the aircraft are put are numerous and varied. Furthermore, conditions in airplane design and operation are changing so rapidly that it is impossible to keep up with developments. For these reasons it can be seen that the time for placing aircraft insurance on an actuarial basis has not yet arrived. Therefore this paper will not be concerned with possible ratemaking formulae but will confine itself to a brief review of the aviation rate-making picture as it exists today with particular emphasis on the main casualty coverages.