Claims for the airline insurance market are expected to outpace premiums for 2010 exceeding $2 billion, for only the third time since 1996, according to a report from Aon Analytics.
The subsidiary of Chicago, Ill.-based insurance broker Aon Corp., said that if the current trend continues in premium pricing, the airline insurance market liability premium could reach slightly more than $1.95 billion. However, the loss estimate for the market is expected to exceed $2 billion. It is the consecutive year that claims have breached that level, Aon said.
With data collected during December, premiums Aon had expected to rise by 4 percent for the month based on 24 renewals. The projected increase for the2010 was 8 percent at press time. Aon noted that while market trends influence prices, “the major factor in setting price appears to be the unique risk that an individual program presents. As a result, loss history and exposure changes are a stronger factor at this stage” than the soft market conditions.
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