LONDON 14 June 2012: Russell Group presented its integrated approach to airline pricing at the risk and portfolio level at a meeting of Aviation underwriters and brokers in London and worldwide by a webinar link.
The event was hosted in the ACORD Conference Suite in the London Underwriting Centre and moderated by David Benyon, Deputy Editor of Reactions Magazine. Russell Group Product Manager Matthew Maddocks outlined the new solution and how it delivers significant benefits for pricing direct airline risk.
Russell Group’s ALPS system already operates in the Aerospace and Casualty market with clients such as Amlin, Munich Re, Hannover Re, Talbot Validus, QBE, AON and Willis. Initiatives are also underway in the Energy and Marine markets.
In his address Maddocks explained that the firm felt that a single integrated data set which incorporated airline fleets, traffic, route and loss data was necessary for consistent pricing.
He added: “We have developed a ground-up event set using existing data sources which when integrated into the ALPS software will enable consistent pricing decisions at the risk and portfolio level.”
Suki Basi, Managing Director at Russell added “What is clear in the market and will be more so in the future is the fact that from a regulatory and risk management perspective underwriters will increasingly be asked to substantiate their pricing decisions with solid data and to do so they will need robust systems on which they can demonstrate they have based those decisions.”