Airline Insurance Review

As aviation aficionados know, the last quarter of the year traditionally is when many of the world’s major airlines renew their insurance programs. Broker Aon has just published its Airline Insurance Market Pre-Renewal Season Review 2007 which offers a good barometer of the market and where it is headed. According to Aon, average hull and liability premium prices have fallen by 15 percent in 2007 so far, yet at the same time exposures continue to grow as new larger aircraft come off production lines ready to fly ever increasing numbers of passengers. From the safety standpoint, so far 2007 also stands out in terms of the high number of fatalities, hull losses and liabilities. Aon notes that compared to the same time last year: there have been nearly 80 percent more fatalities; the value of hull losses ($420.7 million) is 18 percent higher; and the value of liability losses ($406.7 million) has doubled. Aon’s airline risk management survey also throws out some interesting results. While attitude to risk and risk priorities remain broadly unchanged, future risk requirements reflect a growing focus among airlines on corporate social responsibility. Environmental pollution has become the highest future risk requirement, jumping from sixth place in the 2005/06 survey. This change knocked computer crime insurance into second place, while business interruption climbed to become the third highest additional risk that organizations will be looking to insure against in the next three years. Check out further I.I.I. facts & stats on aviation.  

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