New generation aircraft may not be able to buy insurance as underwriters steer clear of the emerging risk or impose unaffordable premiums, warns aerospace engineering firm Horizon Aircraft.
Horizon Aircraft, which developed eVTOL (electric vertical take-off and landing) aircraft Cavorite X5, said commercial operators will not be able to provide enough data for underwriters to assess the risk.
The company said lack of competition in the aviation insurance market and a shift towards traditional underwriting for pilots and risks will also complicate insurance cover for eVTOL. But Horizon Aircraft added that the sector will evolve to develop products for eVTOL over time.
Brandon Robinson, CEO and co-founder of Horizon Aircraft, said: “Insurance coverage for eVTOLs will be a new product with unique risk exposures that will need to be assessed by insurers. This will require huge amounts of data for them to review, covering a wide range of issues such as safety, operational cost, vehicle performance and reliability, as well as the level of pilot training required.”
But Mr Robinson said his company is “confident” of securing insurance for Cavorite X5 because it operates as a normal aircraft for 98% of the time. “The Cavorite X5 is fundamentally a normal aircraft with an additional eVTOL capability. This helps shape discussions surrounding certification and speaks to significantly lowering risks and the cost of insurance,” he said.