Liability and risk management in international air transport : a study of European initiatives

This thesis examines the legal aspects of aviation insurance and reinsurance regarding passenger liability, in particular in Europe. The paper identifies and describes four main trends currently affecting the aviation insurance industry: the globalization of aviation insurance and reinsurance undertakings, increased competition in aviation insurance sector, the liberalization of the European insurance market, and the evolution of the international and European air carriers liability regime. The implications of these trends for premium rates, and for insurance and reinsurance activities in general, are then assessed.This analysis indicates that the liberalization of the European insurance and reinsurance markets remains incomplete, given that certain essential aspects linked to the activities of insurance undertakings are not harmonized. This lack of consistency within the European regulatory regime is found to be a source of invisible barriers which hamper the effective application of the European freedoms of establishment and of providing services as established in the Treaty of Rome. Furthermore, the author identifies a potential for growing friction between the different international regulatory regimes governing air carriers liability. Looking to the future, the expected effects of the single European currency and the expansion of the WTO services disciplines is also examined.The author concludes that the effectiveness of traditional structures and organizations of insurance and reinsurance markets are being challenged by profound structural changes in the industry. In this context, the European liberalization could serve as a model for adapting to this changing environment on a regional level so as to benefit from the opportunities provided by competition and globalization