2009 A Record Year for Aviation Insurance Payouts – Premiums Will Not Cover the Costs, According to Ascend

This, despite fewer accidents

LONDON & NEW YORK--(BUSINESS WIRE)-- Ascend (www.ascendworldwide.com), the aerospace consultants, are warning that aviation insurers’ premium income will fall far short of covering the estimated US$2.4 billion losses incurred this year.

Paul Hayes, Ascend’s safety director, says, “This is the most expensive year on record for aviation insurance payouts, after the 2002 insurance implications of the 9/11 tragedies in 2001. Although premiums rose overall by up to 20% this year, underwriters are still set to make a loss.”

Mr Hayes estimates written premiums of just US$1.6 billionin 2008, the underwriting year in which most of the 2009 claims will fall. Premiums rose in 2009 but only to US$1.9 billion, still leaving a dramatic shortfall.

Losses rose from US$1.6 billion last year, despite the reduction in fatal accidents.

• Total losses of all aircraft, including non-passenger flights, this year were reduced from 76 last year to 44 in 2009.
• 2009 saw 10 crashes in which passengers died – compared to 13 last year.
• Sadly, more passengers were killed as a result of accidents this year, up to 609 from 474 deaths in 2008.

Mr Hayes says: “Despite the tragedy of a greater loss of life this year, the general trend is for fatalities to continue to decline. However, although fewer aircraft are being lost, critically, insurance premiums still fail to meet the costs.”

Ascend will issue a complete safety bulletin in the new year, but is already able to confirm record losses for the aviation insurance industry.

Over half the losses estimated are attributed to three of this year’s 10 fatal crashes on passenger flights. In order of cost, they were:

1. 1 Jun 09: Airbus A340, Air France, 216 passengers died.
2. 12 Feb 09: DHC Dash 8, Colgan Air, 45 passengers died.
3. 30 Jun 09: Airbus A310, Yemenair, 141 passengers died.

Ends…

Please follow the links to view charts containing further information. Please right double click on the charts to view precise figures.

2009 fatal accidents on passenger flights, click here:

http://www.ascendworldwide.com/content/Ascend-2009-AnnualFatalAccidents.gif

2009 Passenger fatalities, click here:

http://www.ascendworldwide.com/content/Ascend-2009-AnnualPassengerFatalities.gif

2009 Total losses, click here:

http://www.ascendworldwide.com/content/Ascend-2009-AnnualTotalLosses.gif

December 22^nd 2009: Fatal accidents including number of passengers who died this year.

About Ascend
Ascend (www.ascendworldwide.com) is the world’s leading provider of specialist information and consultancy services to the global air transport industry. For over four decades it has supplied the most reliable, trusted and up-to-date aviation industry information and insight available anywhere.

Today, all Ascend’s market-leading products and services are built to deliver decision-support information, insight and consultancy across a wide spectrum. Offerings include:

• Aviation fleet information
• Valuations and appraisals
• Technical and commercial solutions
• Market analysis
• Airport economics
• Air safety
• Space analytics

From aircraft manufacturers to operators, financiers, lessors and suppliers, the aviation industry relies on Ascend to help make informed decisions and capture new opportunities.

Ascend is based in London with offices in New York and Hong Kong.

Tannissan Mae Communications for Ascend
Nancy Prendergast
[email protected]
or
Lise Colyer
+44 (0) 20 7243 4440
Mobile: +44 (0) 7988 382 662
[email protected]

Source: Ascend