New Report Projects Aviation Insurance Premiums Will Reach 20-Year High

According to the insurance provider, airlines will contribute approximately 35 percent of the premiums, while general aviation is expected to account for 47 percent. Allianz says the surge in premiums comes as 2024 air traffic is anticipated to reach a record high—growing by 10.4 percent year over year, predominantly driven by the Asia-Pacific and North American regions.

The report highlights that most of the value in aviation insurance claims comes from collisions, crashes, and issues with defective products which together account for 85 percent of total claims. Contributing factors to rising premiums include an increase in aircraft repair costs due to higher labor rates, increased prices for aircraft parts, and inflation.

The report also mentions the transition to next-generation aircraft continues to impact claims, especially with engine disassembly and repair costs. Additionally, a growing shortage of aircraft mechanics and less experienced technicians could influence future claims, potentially leading to higher repair costs and increased risk, according to Allianz.

Editor’s Note: This article first appeared on AVweb.