Airline insurance can be a cyclical business as it depends on the aviation industry and how well or badly the carriers are performing.
In the past few months, the aviation insurance sector has picked up, thanks to higher passenger numbers around the world.
According to Aon, one of the biggest insurance brokers and risk managers, airline passenger numbers are expected to rise by 13 per cent next year.
This compares with a 9 per cent decrease predicted at the same time last year.
Similarly, airlines in every region across the globe are investing in their fleets, with average fleet values forecast to rise by 9 per cent, compared with only 1 per cent last year.
Airlines that have renewed their lead hull and liability insurance programmes from January to July this year have seen a 7 per cent average increase in the cost of the insurance premiums they paid compared with last year.
Aon says more than 60 per cent of those that have renewed their contracts so far have paid higher premiums, suggesting the cost of insurance for airlines is stabilising or even falling in real terms after increases in the past 11 consecutive quarters.
