30 May 2024
Collaborating to Advance Aviation Safety
In a significant step towards enhancing aviation safety, Gallagher Specialty’s Aerospace team recently hosted a workshop in collaboration with the Flight Safety Foundation (FSF), lead airline underwriters, and major airlines. The workshop aimed to boost collaboration and discuss ways to advance safety within the aviation industry.
Chaired by Peter Elson, CEO of the Gallagher Specialty Aerospace division, Dr. Hassan Shahidi, President of the Flight Safety Foundation, and Eduardo Dueri, Senior Partner SOAR of Gallagher Aerospace, the workshop brought together key stakeholders from various insurance companies and airlines. Underwriters representing Allianz, AIG, Convex, Global and Starr were joined by airlines Air Lingus, Fly Norse, Lufthansa, Norwegian and Ryanair.
Peter opened the workshop by emphasising the significance of this gathering. It marked the first time this particular group of stakeholders had come together to discuss how to further enhance safety across the industry and explore opportunities for collaboration. He stressed the importance of continuous improvement in safety, highlighting that it is not a static concept. The industry must strive to do even better, to address new and emerging risks.
One of the key topics discussed during the workshop was the need for aviation organisations to not only establish a documented Safety Management System (SMS), but also demonstrate its effectiveness. Considering the size, scope, and risk appetite of their operations, organisations must go beyond mere compliance. Peter took the opportunity to remind the audience about our very own Insurance Safety Advisory Tool (ISAT), which serves as an essential tool for assessing the effectiveness of an aviation organisation's SMS.
Dr. Shahidi, President of the Flight Safety Foundation, and co-host of the workshop, expressed his gratitude to all participants and emphasised the importance of open and fruitful discussions. Dr. Shahidi expressed his desire to foster more sessions like this and stressed the need to conclude with specific tasks and collaborative approaches to advance safety worldwide.
The workshop consisted of four sessions, each focusing on a particular topic and encouraging participation from the diverse stakeholders in attendance.
Considering the size, scope, and risk appetite of their operations, organisations must go beyond mere compliance.
Session One
The first session featured a presentation by Mark Millan, Flight Safety Foundation Technical Director, who discussed the safety challenges faced by the aviation industry. He introduced the Flight Safety Foundation as an independent, international, and impartial non-profit organisation dedicated to championing aviation safety. Mark provided an overview of the foundation's global events, including the Runway Excursion Prevention Plan, the International Aviation Safety Seminar, and regional safety assessments on business continuity, emergency response planning and SMS held in the Middle East, Africa, Latin America, and Asia Pacific. He highlighted future challenges that demand the industry's attention, such as automation, supply chain management, safety culture, information sharing, climate change, human factors, mental health, and the need to strengthen and measure the effectiveness and maturity of Safety Management Systems (SMS).
Session Two
Titled "Managing SMS Effectiveness," the session chaired by Sandy Lonsbury, Senior Advisor, who introduced Gallagher's Safety & Operational Aviation Risk Solutions (SOAR) practice and emphasised the significance of utilising SMS effectiveness tools. Sandy drew attention to different tools in the industry, including Gallagher's ISAT, SMS Maturity Assessment and Refinement Tool (SMART), and the SM ICG SMS Evaluation Tool as valuable resources. While ISAT was initially designed as a standardised safety/risk information tool, for organisations to provide safety performance information during the renewal process, it has also proven to be an excellent measurement tool for SMS effectiveness. This area presents a potential collaboration opportunity between brokers, underwriters, and the industry at large.
Sessions Three & Four
Regarding the information required during renewal, underwriters acknowledged that while they are not safety experts, they recognise and value the safety information received at that time. Some underwriters want to obtain consistent and potentially standardised aviation safety information from clients/brokers during renewals. They also expressed interest in pursuing safety initiatives that address attritional losses and emphasised the importance of additional investments and methods to measure the effectiveness of safety leadership and safety culture in aviation organisations.
Underwriters reiterated that the Risk Management Bursaries (RMB), or the amounts they are willing to contribute to safety initiatives, should be used exclusively for safety/risk issues where clients require additional support and may lack the necessary resources or expertise.
The airlines recognised the value of SMS effectiveness tools, such as ISAT, in advancing aviation safety. Additionally, the airlines expressed the need to gain a better understanding of the financial impact of safety initiatives, in order to obtain management support. They also requested market support in change management and addressing emerging safety risks, including issues like AI and cabin air quality. The airlines demonstrated a willingness to share data to enhance intelligence on existing risks and identify effective solutions.
Overall, the group collectively began the process of finding the right opportunities for collaboration that included SMS effectiveness (ISAT or similar), safety culture and/or emerging risks. Moving forward, Gallagher Specialty and the Flight Safety Foundation are committed to working closely with underwriters and airlines to promote safety initiatives and foster collaboration. By leveraging the expertise and resources of all stakeholders, we can collectively enhance aviation safety and ensure a secure and reliable industry for all.
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