2011 Was Catastrophe Free
The industry safety performance has been exemplary over the past 30 months with no major catastrophe since the Air France loss in June 2009. Frequency and severity do not directly correlate when it comes to airline insurance but all market stakeholders hope the industry safety performance continues to translate into low loss levels.
But Still Experienced Losses
As aircraft continue to skid off runways around the world, the loss of aircraft hulls is placing a drain on underwriters’ cash reserves but also provides some comfort with a certainty of the overall loss level.
The challenge still remains when dealing with a catastrophe market to establishing a premium volume that addresses the increasingly significant attritional and hull losses while at the same time building a fund to pay for the rare catastrophe loss that will inevitably come.