Losses will lift aviation rates
June is shaping up as the most expensive month for aviation insurance since the US terrorist attacks in September 2001, with rates set to rise significantly as a result.
According to a new report by Aon, the Air France and Yemenia losses last month are likely to set the agenda for the rest of this year and potentially well into next year.
“With just over half of 2009 gone, claims including an estimate for minor losses are already around 11% higher than the average for the full year,” a new Aon report on the aviation market says.
“This means that total claims are likely to be significantly higher than the average by the end of the year, even if there are no further major incidents.”
Aon says even before the June losses there was considerable upward pressure on rates.
Claims outweighed premium last year and in 2007, and difficult economic conditions hit insurers’ balance sheets and squeezed capacity on the back of falling fleet and passenger exposure forecasts.
According to a new report by Aon, the Air France and Yemenia losses last month are likely to set the agenda for the rest of this year and potentially well into next year.
“With just over half of 2009 gone, claims including an estimate for minor losses are already around 11% higher than the average for the full year,” a new Aon report on the aviation market says.
“This means that total claims are likely to be significantly higher than the average by the end of the year, even if there are no further major incidents.”
Aon says even before the June losses there was considerable upward pressure on rates.
Claims outweighed premium last year and in 2007, and difficult economic conditions hit insurers’ balance sheets and squeezed capacity on the back of falling fleet and passenger exposure forecasts.