Extracted from a report by consultancy firm Ascend, received via www.informa.com
Even though there were fewer air crashes in 2009 than in 2008, the aviation insurance industry paid out nearly USD 2.5bn in claims last year, the worst year since 2001, according to a report from the consultancy Ascend. Hull claims amounted to USD 900m, but the higher proportion of westerners involved in the crashes increased the people-related payouts. More people died in the 2009 crashes, and the Air France A330 disaster in the Atlantic had an impact on a number of Lloyd's players. Three crashes — the Air France loss, a Colgan Air commuter crash in Buffalo, New York, and a Yemenia Air A320 crash near the Cormoros Islands — contributed USD 1bn to the losses. Ascend estimated that the aviation insurance sector had failed to move into the black for the past 30 to 40 years, although there had been short-term spikes in cover that had made some policies profitable in the short term. In 2009 premium levels rose by an average of 15%, although the market still looks likely to record a USD 500m loss.
[Edited 2010-01-12 02:56:18]