Airline insurance premiums rising, but claims lower

Aon Aviation & Aerospace reports that insurance premiums have generally risen during the first quarter of this year, with only three airlines experiencing a drop - and that was because of forecasts of reductions in either average fleet value or passenger numbers.

Last year was the third in a row with little or no profit for insurers of our industry, so Aon believes that "there is likely to be a significant amount of boardroom pressure on underwriters to ensure that 2010 is not another year without profit".

However premiums climbed by 20 per cent on average during 2009; and this would have delivered profits if it had been an average year for claims.

But claims last year were considerably higher than average at US$2.3 billion, way beyond the $1.9 billion collected in premiums.

So far this year however the loss figure is $127 million, compared to the $583 million at the same point in 2009.

The only major accident this year to date has been the loss of an Ethiopian Airlines B737 after takeoff from Beirut Airport on 25 January.

Aon says that "if 2010 continues in its current direction and claims are kept to a minimum, then underwriters should enjoy a positive year and may go some way to recuperating the recent lack of return".