NU Online News Service, July 26, 2:51 p.m. EDT

Top Aircraft Insurers The aviation-insurance market is described as stable with renewal pricing indicating no dramatic change in trends, and losses to date are at one of the lowest levels in years, according to two insurance brokers' reports.

Insurance brokers Aon and Willis released their June aviation-market reports saying that while some individual renewals experienced dramatic increases because of loss, average prices saw no dramatic change in rates.

Aon describes the market as “calm” with lead hull and liability prices rising only 1 percent on average so far this year.

Willis says that while the market remains stable, some programs experienced an increase of more than 100 percent because of losses. Others received premium reductions in excess of 25 percent “largely as a result of dramatically reduced exposure.”

Aon says a third of renewals thus far this year saw lead hull and liability premium rise or fall in a range of between plus-5 percent and minus-5 percent.

On the loss side, both brokers noted that the level is low compared to the same period last year.

Aon put the current loss figure so far this year, excluding minor losses, at $121 million compared to $959 million last year. Including minor losses, the figure jumps to $471 million compared to $1.3 billion for the same period last year.

Willis put hull loss for the first half of 2011 at $117 million and liability at $58 million with overall loss at $400 million.

Fatalities are also far below average with only 140 as of the end of June compared to an average of 260 for the first seven months of the year between 1995 to 2010, says Aon.

“The experience of 2011 continues to demonstrate the uncertain nature of airline insurance as there have been just five losses in excess of $10 million with no losses in excess of $50 million,” says Willis.

Further illustrating the unpredictable nature of the industry, Willis notes the fatality totals are the fourth lowest in the last 10 years. However, the broker went on to note that for two of the three years with the lowest fatality total at the half-year mark, the years finished with the worst three annual fatality totals.

Special Reports /

Aviation Losses at Low So Far in 2011; Pricing Stable

Related Stories

Recommended For You