After five years of competitive market conditions, airlines around the world saw their lead hull and liability premium increase on average by 7% in 2008, according to Aon's Airline Insurance Market Outlook 2009. Following the 11% decline in 2007, this means that the market swung by 18% in the last two years and the tougher conditions are likely to continue in 2009.
Total lead hull and liability premium rose from US$1.51bn in 2007 to US$1.60bn in 2008, while insurers are estimated to have paid out US$1.45bn in claims. Many underwriters are likely to have made a loss in 2008 however, as a result of a variety of factors including fixed and reinsurance costs, and will be under further pressure in 2009 as capital providers scrutinise their current level of investment.
Please follow this link to read Aon's Airline Insurance Market Outlook 2009.
If you would like a member of our team to contact you about the 2009 Airline Outlook report, please contact aviation@aon.com.
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