Health crisis has left insurers in an unprecedented situation. The latter must, in the coming months, take into consideration new risks with planes grounded and with increasing freight operations. Aircrafts grounded and airports overstretched. Covid-19 appeared when airport aircraft parking lots were already overwhelmed by the immobilization of hundreds of Boeing 737 MAX aircrafts due to a technical defect. The Coronavirus pandemic has actually compounded an already worrying situation. The financial burden of storing aircraft has become a burden for airlines and airports. More than 8 000 planes, or a third of the world’s fleet with an insured value of 164 billion USD, are grounded. Insurers who cover both aircraft on the ground and in flight have to come to grips with a high cumulative risk.
During the pandemic, cargo operations, particularly those pertaining to medical and humanitarian supplies, have increased. The companies found themselves compelled to reconfigure the planes to meet this unexpected demand. Insurers must ensure compliance with safety and navigation requirements for all types and uses of aircraft. Air carriers who do not comply with these provisions may end up with invalidated insurance contracts. Any modification in the use of the aircrafts must be notified to insurers so that they can reassess their commitments.