Come fly with me
Simoney Girard finds out how Hiscox is helping pilots whose careers have taken a nosediveFor some people, achieving their pilot’s licence and taking to the skies is fulfilling a childhood dream. But it is also a demanding, high-risk occupation, with commensurately high salaries.
Salaries vary according to area of operation, the type of aircraft and the pilot’s experience. The basic starting rate for a UK pilot is about £35,000, while senior captains can earn more than £150,000. But there are conditions: a slight deterioration in physical or mental fitness (such as raised blood pressure) can mean that they fail the Civil Aviation Authority’s rigorous medical checks. Even stress or depression can see a pilot lose his job. If, due to illness or accident, their dream turns sour, pilots need protection from loss of income.
For Mark Bright, Managing Director of Hiscox Global Flying, this is why specialist cover for fixed-wing and helicopter pilots needs to be robust and cover as wide a geographic area as possible. “We cover commercial pilots worldwide on a direct and reinsurance basis, provided we are licensed to write this class of business in that country,” he explains. “It is not just airline companies, but also individual commercial pilots, flight schools, trainers and pilot unions across the globe.”
To this end, Hiscox Global Flying offers three dedicated products:
• Loss of Licence – provides financial support for professional pilots, flight instructors and air traffic control officers if their career is brought to an end
• Loss of Training Expense – covers students who have incurred considerable costs in learning how to fly only to suffer accident or illness that results in an inability to complete the course
• Loss of Flying Pay – for armed services staff (usually RAF) who can no longer fly due to medical downgrade and must take a lower-paying job.
“Pilots need to maintain their lifestyle and these products are a form of income protection to remunerate them if they lose their licences,” Mark says. “The premiums are driven by geographical area, level of income being protected and age; generally, older pilots are more likely to lose their licence for certain conditions than younger ones.”
Launched as Global Flying Insurance Services in 1996, the company was bought by Hiscox in 2006. Since then, Hiscox Global Flying has seen its income nearly double. “This is a result of combining the strength of the Hiscox brand and infrastructure with the expertise of the Global Flying team,” adds Mark. “Loss of licence is a specialist area covering high net worth clients and has big potential for growth.”
Following its successful integration and re-branding, Hiscox Global Flying is now enhancing its offering to continue delivering leading-edge products based on the changing needs of broker clients.
Commercial flights are growing in number every year – there are about 15,000 commercial pilots in the UK alone. Add this to pilots from the rest of the world, as well as the number of military pilots and air traffic controllers, and it’s clear that brokers have a wide client base to tap into.
As Mark says: “Hiscox is committed to growing this niche area with its broker partners.”
