Aviation insurers face large losses in June

Airline insurers faced their biggest monthly loss in June since the September 11, 2001 World Trade Center attacks. A report from insurance broker Aon Corp said the recent airline crashes, including the Air France jet in the Atlantic Ocean at the beginning of June and a Yemeni jet in the Indian Ocean at the end of the month, will add pressure on insurers to raise prices for aviation insurance, which are already on an upward trend. Aon said total claims for the year could top $2.2bn, some 57% above the long-term average of $1.4bn. “If the rest of 2009 follows the 13-year average pattern for losses, and discounting 2001, the year will be the most expensive ever seen in the airline insurance market,” it said. Insurance price hikes are expected to continue into next year Aon said, adding to airlines’ financial pressure. “This will be a bitter pill to swallow for an industry that is already seeing passenger numbers fall as a result of the global economic downturn as well as fuel prices that are climbing once again,” Aon said.