Aviation Market News

Total claims for aviation insurers are likely to be significantly higher than the average by year-end, even if there are no further major accidents, according to Aon’s July 2009 Airline Insurance Market News. With just over half of 2009 gone, claims including an estimate for minor losses are already around 11 percent higher than the average for a full year. Overall losses (including minor losses) have cost aviation insurers $1.59 billion so far in 2009, compared to $715 million in 2008. Aon projects that total claims for the year could exceed $2.2 billion, nearly 60 percent higher than the long term average of $1.4 billion. With the Air France and Yemeni losses, June looks set to be the most expensive month in the aviation insurance market since September 2001. “In an already hardening market, this means price rises are likely to be universal for the rest of 2009,” Aon notes. It also means that even with half the year still to go, 2009 is already the third most expensive year ever in terms of hull and liability claims (excluding 2001). “Any further major losses will simply make the position worse, and would potentially extend the expected hard market conditions well into 2010,† Aon adds. Check out I.I.I. aviation facts and stats.

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