Aon Risk Solutions: Airline insurance rates up 4% in 2010
Aon Risk Solutions stated (05-Apr-2011) the airline industry has started to recover, with rising passenger numbers and fleet investments resulting in insurance premiums rising by 4% on average during 2010, according to its ‘Airline Insurance Market Outlook, 2011’. Insurers paid out more in claims in 2010 than they took in premiums, with USD2.1 billion in payments. According to Aon, 2010/11 placements showed a recovery in every region of the world, with airlines in Asia Pacific predicting the largest increase of 12%. Growth in Europe is forecast at around 11%, while in North America it’s around 7%. Based on insurance renewal data, regional airlines predicted the largest increase in passenger numbers (28%), followed by international airlines (14%), low-cost carriers (10%), flag carriers (7%) and charter airlines (7%). One of the major elements in determining the cost of an airline’s insurance premium - other than the value of their fleet - is the number of passengers they expect to carry.