Airline Crash
Insurance Claims Fall as Accidents Decline
By Robert
Wall
Airline insurance
claims for plane accidents will drop
below $1 billion this year for the first time since 1991 as passenger fatalities and aircraft destroyed hit record lows, advisory firm Ascend estimates.
Claims for
aircraft losses and legal liabilities this
year will total about $980 million, or $300 million less than last year, Ascend said in a report. Claims are almost half the $1.8 billion in premiums written in the period, it said.
The International
Air Transport Association said
earlier this month that western-built jets suffered 0.19 "hull loss" accidents per million flights this year through November as the industry headed to its safest year on record. IATA's figures didn't reflect the Dec. 25 crash of an Air Bagan Fokker 100 jet in Myanmar in which one person on-board died and the out-of- production aircraft was destroyed.
"Airline fatal
accident rates have been steadily
improving and, on average, operations are now twice as safe as they were 15 years ago," Paul Hayes, head of safety at Ascend said in a statement. "With such a benign insurance claims year and increasing capacity in the market, we believe that premium income will continue to fall in 2013."
There is concern
premium levels are "too low to be
able to maintain the market in the longer term," Hayes said. Premiums have declined for three years and for 2012 were more than $800 million below the 2003 level when they reached $2.7 billion, the highest in the last 10 years. |
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