Crashes and collisions dominate $15b of aviation insurance claims: Allianz

Covid-19, the energy crisis, Russia’s war - to say that the aviation industry, and its insurers, have had to face significant challenges in recent years is an understatement. However, aviation has rebounded well with several 2023 parameters showing “best ever” safety results. This year, the volume of global air passengers is expected to hit an all-time high (+10.4% year-on-year), driven by Asia-Pacific and North America. While the general outlook for the industry is positive, there are still lots of challenges to tackle, according to Allianz Commercial’s Aviation Risk, Claims and Insurance Outlook. The aviation sector produces some of the highest value and high-profile claims across the corporate insurance sector around the world, the report notes. Analysis of more than 32,000 industry claims from 2019 - 2024 with a total value of US$15b shows that collision or crash incidents (63%) and faulty workmanship or defective products (22%) are accountable for 85% of the value. Other incidents like natural catastrophes (4%), machinery breakdown (3%) or fire (1%) account for a much smaller proportion of claims by value. “The aviation market is in an interesting and possibly unprecedented place with the traditional market cycle having been interrupted by the impact of the pandemic and wars. The continual growth of the aviation sector will see premiums hit a 20-year high in 2024 of more than US$8bn,” says Tom Fadden, Global Head of Aviation at Allianz Commercial. “We see a growing interest in multinational insurance, and more enquiries for international insurance placements for entire programs across lines of business, driven by increasing geopolitical and regulatory concerns and a desire from clients for a highly managed insurance structure. Yet dark clouds continue to hover for insurers with well-publicized losses and inflation pressurizing bottom lines.”<br/>