As 2011 draws to a close it will, barring a major catastrophe in the next 10 days, be one of the best years on record in terms of airline claims.
Our latest Airline Insight report finds that this excellent safety performance has, along with a requirement for diversity, kept insurers in the airline market and underwriting capacity plentiful.
High capacity and low claims levels continue to make it a buyers’ market with little change in the environment expected in the early part of 2012.
The majority of programs have come to market in 2011 projecting significant growth in exposures which has been heavily discounted in terms of premium by insurers.
The airline industry also continues to wrestle its economic challenges and as a result consolidation and insolvency continue to impact the market. There are economies of scale and synergy savings available and as a result premium levels continue to be eroded.Aviation insurance will remain a relatively minor cost in the overall cost of an airline operation but will command attention due to the perceived influence that can be brought.