The recent standoff at Hong Kong International Airport between Chinese authorities and protesters has underscored the potential airport ground accumulation exposures faced by international re/insurers, according data from risk management firm Russell Group.
(AP Photo/Vincent Yu)
By quantifying aerospace industry and portfolio peak exposure, Russell Group showed that 69 aircraft with a combined value of $6.1 billion were scheduled to be on the ground at Hong Kong airport on August 16.
This figure exceeds the annual average for airport ground accumulation at the airport, which Russell Group pegs at 68 aircraft.
The firm notes that Hong Kong’s airport is an important regional trans-shipment centre, passenger hub and gateway for destinations in Mainland China and the rest of Asia.
“With a build-up of troops, military transports and armoured personnel carriers across the border in Shenzhen, airlines and their insurers will be increasingly mindful of their on the ground assets,” said Russell Group Chief Executive Officer Suki Basi.
“Airports around the world are a strategic national asset and therefore often seen as fair game for disruption by protestors and factions seeking to score propaganda points. The risk, however, could be considerable if one side miscalculates.”
