Aviation Insight

Aon Airline Insurance Market Outlook 2012

Bringing together insurance data for 2011 and extrapolating the likely market direction for this year, the Aon Airline Insurance Market Outlook 2012 suggests that while airline claims were at a historically low level last year, the risk that the aviation industry represents remains high and as such prices are likely to remain stable for the majority of airline insurance programmes.

The report confirms that the underlying cost of insurance continues to fall. Exposures, represented by average fleet value and passenger forecasts, are growing, meaning that the real cost of insurance is falling.

Please follow this link to read Aon's Airline Insurance Market Outlook 2012.

Airline Insurance Market Indicators 2011/12

The competing pressures on the airline insurance market means a soft trend overall. The world’s economic recovery is patchy to say the least however, and the divergence in insurance prices reflects this.

Please follow this link to read Aon’s Airline Insurance Market Indicators 2011/12.

Aon Airline Insurance Market Outlook 2011

Aon's Airline Insurance Market Outlook 2011 report is now available.

Prices in the airline insurance market stabilised during 2010, despite rising exposures and the high level of claims. This report examines the industry’s 2010/11 insurance placement data and discusses what the prevailing trends are likely to be in this year.

Please follow this link to read Aon's Airline Insurance Market Indicators 2010/11.

Aon Airline Insurance Market Indicators 2010/11

Aon's Airline Insurance Market Indicators 2010/11 report is now available.

With 2010 looking set to be another expensive year from a claims perspective, can the market continue to stabilise?

Please follow this link to read Aon's Airline Insurance Market Indicators 2010/11.

Aon Airline Insurance Market Outlook 2010

Prices set to continue to rise in 2010, but the rate of increase should slow

While lead hull and liability prices rose by 20% on average during 2009, total premium will not have been high enough to cover the significant claims that occurred during the year. As a result, 2009 will have been a third consecutive loss making year for airline underwriters.

That said, the price rises should slow in 2010 as a result of the more benign economic conditions and the fact that, despite the high level for claims in 2009, the airline industry’s loss history has been relatively good over the last five years.

This is the key finding of Aon's Airline Insurance Market Outlook 2010 report, which brings together the analysis that we made in 2009 and looks at how it will impact market direction in 2010.

Please follow this link to read Aon's Airline Insurance Market Outlook 2010.

Aon Airline Insurance Market Outlook 2009

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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Airline Insurance Market Indicators, Autumn 2008

After the longest soft market period in living memory, the airline insurance market is beginning to harden, shows Aon's Airline Insurance Market Indicators, Autumn 2008.

With the November-December renewal season approaching, the report examines activity during the first seven months, when only around 30% of airline renewals enjoyed a reduction in the their lead hull and liability premium price, compared to over 70% during the same period last year.

The report looks in depth at the airline insurance market between January and July 2008, examining the changing position by fleet value, region and operation type, as well as looking at the losses that have occurred so far this year by region.

Follow this link to read Aon's Airline Insurance Market Indicators, Autumn 2008.

Airline Insurance Market Review, 2007

The high level of hull and liability claims, at US$1.7bn, coupled with the lowest amount of lead hull and liability premium since 2000, US$1.5bn, means that the airline insurance market was broadly unprofitable in 2007. The negotiating process is likely to be tougher in 2008 as a result, Aon’s Airline Insurance Market Review of 2007 suggests.

The review’s findings include:

• Total recorded lead hull and liability premium for 2007 was US$1.5bn, a reduction of -30% since 2005
• Total incurred claims, including hull, liability and an estimate for attritional losses, amounted to US$1.7bn
• North American fleet values, at US$192bn, fell below those of Europe and Asia, both at US$193bn, for the first time in 2007. North American passenger numbers, however, were still higher than the other two major aviation regions
• The proportion of passengers travelling with flag carriers fell from 66% in 2005 to 48% in 2007

To read the fully searchable, web optimised version, please follow this link.

Airline Insurance Market Review, Pre-Renewal Season 2007

Aon's Airline Insurance Market Review, Pre-Renewal Season 2007 brings together all of the information and analysis that Aon's airline division has collected during the first three quarters of the year.

While there has been a decline in the impact of the renewal season over the last couple of years, we expect around 60% of the total annual lead hull and liability premium to renew during the last quarter. This review is intended to ensure that the airline industry, the insurance market, and other interested parties have a clear understanding of what the current position is and how it may evolve into 2008.

The review breaks down the airline industry by region, fleet value and sector, ensuring clarity around how the insurance market is approaching different types of business. It also provides overviews of both the market and the industry so far this year and discusses some of the wider offering that Aon has for its clients.

Click here to read Aon's Airline Insurance Market Review, Pre-Renewal Season 2007

Airline Insurance Market Review, 2006

Aon’s Airline Insurance Market Review of 2006 highlights the significant acceleration in average lead premium reductions during the final quarter of 2006. Bringing together all of the data for 2006, the Airline Insurance Market Review examines the market from a regional, sector and fleet value perspective to ensure that the market is as transparent as possible for everyone involved.

The key findings of the review are:

• The low-cost sector continues to thrive, with an average -6% reduction in lead hull and liability premium despite fleet value growth of +15% and carrying +22% more passengers
• The market continues to reward economies of scale, with operations with a fleet value of more than US$5bn receiving an average reduction of -22%
• Competition has continued to put pressure on the Excess Third Party Liability market, which has delivered US$6bn of profit to participants since 2001 despite there being no claims during that period

The merger and consolidation activity witnessed in 2005 abated slightly in 2006, although it has been a significant factor in the -7% premium erosion in the market year–to–date. There continues to be an expectation in the airline industry that there will be more mergers announced as the year progresses.

Click here to read the review.