Aon Aviation Insurance World Report

airline insurance market

indicators 2010/11

]

the storm abates

airline insurance market

indicators 2010/11

contents

foreword executive summary overview analysis

loss quarterly regional fleet value sector analysis analysis analysis analysis analysis

03 04 05 09

10 14 15 21 25

inclusion criteria/notes

29

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Aon airline insurance market indicators 2010/11

foreword

After hardening considerably in 2009, conditions in the airline insurance market have been getting calmer throughout 2010 so far. While lead hull and liability prices continue to rise, the increases are tending to be lower than exposure growth. This means that in real terms, the cost of airline insurance is falling. Even the string of major losses between May and August does not appear to have created the conditions necessary for the market to harden significantly at this stage. That said any further losses could potentially mean that overall the airline insurance market makes a loss for the fourth consecutive year, something that could have ramifications for capacity and pricing in 2011. At this point, it seems that there is the prospect of a stable, or even soft insurance market for the rest of 2010 and into 2011, which will be welcome news after the difficulties that the airline industry has endured over the last couple of years. The position is far more positive than it was this time last year. According to the insurance programmes placed so far this year, average fleet value and passenger numbers are forecast to grow by 9% and 13% respectively, suggesting that confidence is rising. The airline industry is not out of the woods yet however. There are plenty of organisations that have struggled to the end of their reserves during the downturn and any further turbulence in the economy could put them into significant difficulties. It has never been more important to talk to us about ways that we can support your business above and beyond the hull and liability aspects...