AVIATION INSURANCE CLAIMS AT A RECORD LOW

Dino D'Amore
By Dino D'Amore July 29, 2011 12:04

AVIATION INSURANCE CLAIMS AT A RECORD LOW

Aon Aviation has reported that so far 2011 has delivered a record low level of airline insurance claims. “The current loss figure, excluding minor losses, is US$120.68 million so far this year, compared to US$958.82 million recorded at the same point in 2010. Adding an estimate for minor losses, the overall loss total is US$470.68 million at present, compared to US$1,279.65 million in 2010.

“As a result, claims, including an estimate for minor losses, are currently around 36% of the level reported between January and the end of July 2010.

“All six regions that we divide the world into are well below average in terms of total incurred claims for the year so far. Airlines in Africa, the Middle East and North America have made claims of less than US$5 million so far this year.

“Fatality levels are also low, with only 140 so far this year compared to 260 on average in the first seven months of the year between 1995 and 2010.

“The fatalities have been confined to four regions at this stage, Asia, Europe, Latin America and the Middle East. Of these, only the Middle East has a higher number of fatalities than the long term average at this point in the year, 66 compared to 16. This is the result of a single loss in Iran involving a 37 year old aircraft.

“There have only been 18 incidents meeting the criteria for inclusion in the data so far in 2011. This compares to around 41 on average between 1995 and 2010. There have been no losses valued at more than US$50 million.

“The low number and value of claims and fatalities so far in 2011 is exceptionally positive, particularly in comparison with 2009 and 2010 when claims were very high compared to the long term average.

“The airline industry still represents a considerable risk, however, a single loss could mean that the claims statistics for 2011 overtake the long term average. Equally, as we have seen in many other years, a string of incidents at the mid-point of the year can change the position significantly.

“At this point, however, the low number of claims for 2011 so far is very positive and will help with the insurance negotiating process after two difficult years.”

Dino D'Amore
By Dino D'Amore July 29, 2011 12:04
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