Growth among European and Asian airlines is likely to tip the balance away from North America in the aviation insurance market this year, according to broker Aon’s review of 2005. The company says the North American share of global fleet value has declined from 37% to 33% since 2001, and passenger share has fallen from 41% to 36%. “This has led to decreases in insurance premium share from 39% to 32% to reflect changes in global risk exposure.” Aon cites the maturity of the North American market, “fierce competition” between airlines, the liberalisation of aviation in some emerging markets and continued strength in the European airline sector as reasons for the shift. “Global exposures are changing so insurers and brokers need to respond to changing risk profiles to offer the industry greater protection through risk management and insurance cover,” says Doug Peterson, Aon’s aviation global practice leader.
Source: Flight International
