Insurance Implications From Air France Crash

I.I.I. Has Facts and Statistics Available Regarding Commercial Airline Accidents

INSURANCE INFORMATION INSTITUTE 
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580

NEW YORK, June 3, 2009 – Reporters with questions regarding the potential insurance implications arising from the crash this week of Air France flight 447 from Rio de Janeiro to Paris can contact the Insurance Information Institute (I.I.I.). There are many actual and potential complexities associated with this tragic incident, including the fact that the Airbus 330 involved was owned by a French company, built by a European consortium with parts supplied from around the world and crashed in international waters. Moreover, the 228 people who died in the crash were citizens of 32 different countries, including two U.S. residents.

According to Aon Aviation and Aerospace, aviation insurance premiums could be affected by this week’s crash as insurers evaluate the risks associated with providing hull and liability coverage on commercial aircraft. Insurance for commercial aircraft is usually provided by members of a consortium with one or two companies serving as lead underwriters.

Despite the tragic loss of Air France flight 447 this week, there is no question that flying is safe and getting safer. Since 1990 there has been a significant decline in the aviation accident fatality rate worldwide from about 19 accidents per 10 million departures in 1990 to around four in 2008—a decline of approximately 80 percent. There were 29 fatal accidents in 1990 compared to 11 in 2008. These same trends are reflected in data for the United States. The February 2009 crash of commuter jet outside Buffalo, NY was the first fatal incident involving a U.S. scheduled flight since August 2006.

Visit the I.I.I.’s website for more facts and statistics on aviation insurance.

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.