Global airline insurance cost likely to fall this year

July 6 2015 by InsuranceAsia News Staff

An international aviation insurance expert has predicted a fall in the insurance cost for the airline sector globally.

The insurance cost will be cut, despite some large claims recently, due to the intense competition and the industry’s better risk management practices, Martin Stevans, chief underwriting officer at Global Aerospace, a unit of AIG, was quoted as saying.

The expected cut in insurance cost will serve as another bonus for the airline industry, which is currently benefiting from the steep fall in fuel prices.

Stevans said airline insurance premiums have fallen recently and will fall further in the days to come due to competition in the market.

However, he did not provide a number for the expected premium cost fall.

The overall premium cut will take place despite some large claims in overseas markets following a string of air crashes in recent months.