Record year for aviation insurance payouts – premiums won't cover costs, according to Ascend

"This is the most expensive year on record for aviation insurance payouts, after the 2002 insurance implications of the 9/11 tragedies in 2001. Although premiums rose overall by up to 20% this year, underwriters are still set to make a loss."

Paul Hayes, Ascend's safety director, says, "This is the most expensive year on record for aviation insurance payouts, after the 2002 insurance implications of the 9/11 tragedies in 2001. Although premiums rose overall by up to 20% this year, underwriters are still set to make a loss."

Mr Hayes estimates written premiums of just US$1.6 billion in 2008, the underwriting year in which most of the 2009 claims will fall. Premiums rose in 2009 but only to US$1.9 billion, still leaving a dramatic shortfall.

Losses rose from US$1.6 billion last year, despite the reduction in fatal accidents.

• Total losses of all aircraft, including non-passenger flights, this year were reduced from 76 last year to 44 in 2009.
• 2009 saw 10 crashes in which passengers died - compared to 13 last year.
• Sadly, more passengers were killed as a result of accidents this year, up to 609 from 474 deaths in 2008.

Mr Hayes says: "Despite the tragedy of a greater loss of life this year, the general trend is for fatalities to continue to decline. However, although fewer aircraft are being lost, critically, insurance premiums still fail to meet the costs."

Ascend will issue a complete safety bulletin in the new year, but is already able to confirm record losses for the aviation insurance industry.

Over half the losses estimated are attributed to three of this year's 10 fatal crashes on passenger flights. In order of cost, they were:

1. 1 Jun 09: Airbus A340, Air France, 216 passengers died.
2. 12 Feb 09: DHC Dash 8, Colgan Air, 45 passengers died.
3. 30 Jun 09: Airbus A310, Yemenair, 141 passengers died.

Please follow the links to view charts containing further information. Please right double click on the charts to view precise figures.

December 22nd 2009: Fatal accidents including number of passengers who died this year.

-- 7 Feb 09 Bandeirante Manaus Aero Taxi 22
-- 12 Feb 09 DHC Dash 8 Colgan Air 45
-- 25 Feb 09 Boeing 737 THY 5
-- 1 Jun 09 Airbus A330 Air France 216
-- 30 Jun 09 Airbus A310 Yemenair 141
-- 15 Jul 09 TU-154 Caspian 153
-- 24 Jul 09 Ilyushin IL62 Aria Air 3
-- 2 Aug 09 Twin Otter Merpati 12
-- 11 Aug 09 Twin Otter Airlines PNG 11
-- 12 Nov 09 CRJ 100 Jetlink Express 1