Aviation insurance drops despite death toll

Although passenger air flights have experienced a significant increase in fatalities 913 deaths in 2005, compared to 347 in 2004 insured losses will likely only increase a small amount, a recent report published by London-based Airclaims Ltd. notes.
Western-built jets which Airclaims reports transport approximately 90% of all air traffic set the scene for eight fatal accidents in 2005, translating into 718 passenger deaths. This concerning increase in fatalities goes hand-in-hand with a new trend toward heightening air safety.
So far, 2004 has been dubbed as the “safest year for passenger travel” since 1945, with three fatalities on Western-built jets and 211 passenger deaths.
“In actual fact, 2005 represents a disappointing return to ‘normal’,” Paul Hayes, director of safety at Airclaims, reports in a media statement.
This normality means that the downward pressure on insurance rates for aviation business will continue.
Predictions, hull and liability insurance losses increased from the $1.06 billion figure that accumulated in 2004 to between $1.2 billion and $1.3 billion in 2005, according to Airclaims.
Hayes says that insured losses may have been higher for 2005 if the Air France A340 accident at Toronto’s Pearson International Airport had resulted in more serious results. However, all 297 passengers survived.