Aon reports airline claims outweighed premium in 2013 but prices set to continue to fall

Aon Risk Solutions, the risk management business of Aon, Airline Insurance Market Outlook 2014 finds that total global lead hull and liability premium for 2013/14 airline placements was around $1.4 billion, but this was outweighed by the estimated $1.5 billion of claims for the year. Despite this imbalance, the report suggests that prices are likely to continue to fall in the short term because the losses in 2013 were relatively few in number and involved the lowest number of fatalities since 1995. As a result, insurance capacity continues to be attracted to the sector. Competition is likely to remain healthy