eVTOLs take flight

The aviation sector is excited about the prospect of exponential growth for Advanced Air Mobility (AAM) and electric vertical takeoff and landing (eVTOL) aircraft in future, which offer the potential to revoluntionize aviation, fostering sustainability, efficiency, and enhancing passenger experiences.

eVTOL aircraft operate by integrating electric propulsion, vertifical lift capabilities, and flight control systems, eliminating the need for traditional runways, and performing a variety of tasks, including passenger and cargo transportation, medical evacuation, firefighting, and offshore operations. Revenues are projected to surge from US$1bn in 2030 to US$90bn by 2050.

Insurance is already being provided to eVTOL manufacturers for test flights. As with every development of new technology, there will always exist uncertainty however. For now, the expectation is that operational risks will remain the same as currently seen in general aviation operations, such as loss of power, mid-air collisions or foreign object damage. However, due to the sensitive nature of aircraft movements in dense urban areas and its implication for liability claims, underwriters will deeply scrutinize the safety management systems of operators to ensure that full regulatory compliance is achieved.