Aviation insurers expect record-breaking year

THIS YEAR is on target to be a record-breaker in the history of the aviation insurance market, according to Quentin Palmer-Brown, director of Aon Aviation - a division of Aon Risk Services. He expects it to generate the largest underwriting profit ever. "This may come as a surprise considering that the 2001 calendar year was the worst eve," he said. But the fourth quarter of 2002 is going to be critical to underwriters if they are to be truly successful in raising the value of their commodity and maintaining their premium base into 2003, Palmer-Brown added. "Should any of the carriers currently facing financial difficulties actually cease operations, it will leave a substantial hole in the market'Õs premium income total," he said. In the aviation insurance market there has been little change to the measures imposed after September 11, although some governments have withdrawn this indemnity feeling coverage is best provided by the commercial market, according to Palmer-Brown.