Highest year after 9/11 as westerner deaths cost more
Airplane consultancy Ascend said insurers paid out almost $2.5bn in plane crash claims last year, second only to the ¢5bn in pay-outs that followed the attacks on 11 September 2001, the FT reports.
There were fewer crashes than in 2008 but they involved larger planes and more people died. The high level of claims is expected to lead to a rise in premiums.
"This is the most expensive year on record for aviation insurance pay-outs, after the 2002 insurance implications of the 9/11 tragedies," said Paul Hayes, Ascend's safety director.
Three big crashes
Three crashes in 2009 were responsible for about $1bn of the total claims, according to Ascend.
- Air France A330 in the Atlantic, killing 228 passengers and crew, a few hours after leaving Rio de Janeiro in Brazil
- Yemenia Air A320 that crashed near the Comoros Islands, killing 152
- Colgan Air commuter aircraft that crashed in Buffalo, New York, killing 48
Westerners cost more
The large number of westerners killed increased the cost of insurance claims. Hull claims, which cover the aircraft themselves, amounted to $900m, or 36%.
Airline insurance premiums written already rose 20 per cent last year, according to Ascend, but the total collected was only $1.9bn, leaving insurers short after paying the claims.
