Despite an estimated $535 million overage in aviation insurance claims this year stemming from a recent spate of foreign airline losses–including two fatal crashes involving Malaysia Airlines Boeing 777s and a rebel attack at Libya’s Tripoli International Airport that damaged 20 airplanes–Corporate Aviation Insurance Group president Matt Drummelsmith doesn’t expect any effect on insurance premiums for U.S.-based aircraft operators.
“Typically speaking, insurance carriers will raise their rates across the board to make up for significant losses, which could mean passing on rate increases to those who have impeccable safety records and no claims,” he said. “However, there are two key points to consider. Of the two major airline accidents, one has already been determined to be an act of terrorism. Therefore, its claim payment comes from a separate fund, which doesn’t necessarily affect the insurance carriers directly.
