Airline insurance premiums may rise 20% in 2009
Aon Corp stated airline insurers may increase average premium prices by approximately 20% in 2009, in a year that “looks set to be the most expensive year” in recent history, following a series of air incidents (Bloomberg, 06-Aug-09). According to the insurance broker, overall losses so far in 2009 have increased from USD798 million in the comparable period in 2008 to USD1.66 billion, with Jul-2009 the second most expensive month for the airline insurance industry after Sep-2001, following fatal crashes by Air France and Yemenia Airways.
Aon Corp: “With claims levels for 2009 already above the long-term average for the year, the case for higher prices in the airline insurance market appears to be pretty much unarguable,” Company Statement. Source: Bloomberg, 06-Aug-09.