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Aon Airline Insurance Market Indicators 2009/10
The challenging economic conditions are forcing airlines to be realistic about their expected level of growth during their 2009/10 insurance policies, with average fleet values (AFV)* only expected to rise by 1% while passenger numbers are set to decline by 9%, according to Aon’s Airline Insurance Market Indicators 2009/10.
The 2009/10 exposure forecasts stand in stark contrast to the exuberance reported in recent years. For the same period in 2008, AFV was expected to rise by 11% and passenger numbers by 13%. Similar exposure growth was forecast in 2007, 2006 and 2005.
The report’s key findings suggest that based on insurance programmes placed so far this year:
- Passenger numbers in North America are expected to fall by 15% during the 2009/10 policy period, while AFV will fall by 3%;
- Flag carriers expect the steepest declines in exposure, with AFV due to fall by 6% and passenger numbers by 13% as a result of the economic downturn putting pressure on business travel;
- Bucking the trend, growth in the Middle East is expected to continue, with a 15% increase in AFV coupled with a 17% growth in passengers. The rate of growth is significantly lower than in previous years however, and a significant proportion of the region’s renewals have yet to be placed.
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