Insurance Market: First Loss Since 2000

The airline insurance market looks set to make its first loss since 2000, according to preliminary data collected by the Aviation & Aerospace division of Aon Corporation, which predicted that airline losses will outweigh global hull and liability premium. While it does not think there will be a major retrenching in underwriting capacity as a result of one poor year, if trends extend into a second year, it may mean a significantly tougher market in 2009.
With more than 85 percent of the year's activity now completed, forecasts suggest that the total hull and liability premium in the market will be approximately $1.46 billion for the whole of 2007, but the level of losses will mean that claims will be at least $1.53 billion. For a complete analysis see the next issue of Regional Aviation News.