The insurance pricing trends for airport owners and operators in the first quarter of 2021 are based on:
Underwriter considerations include passenger numbers and aircraft movements, scope of responsibilities of the airport compared to third parties’ responsibilities, whether the airport handles direct flights to the US, types of aircraft regularly operating, limit of liability, and loss record.
This is a well-established subclass, with almost all major insurers writing airport owners and operators coverage. Although the appetite for certain insurers to write 100% of the exposure has reduced, significant capacity remains. Loss records among airports can vary greatly depending on location, culture, and the extent to which they outsource core activities to third parties. High frequency, low severity “trip and slip” losses are common. Insurers have recently become extremely concerned by large court judgements for damages for bodily injury, especially in the US.
The data analysis is derived from the aggregation of hundreds of discrete insurance renewals for aerospace organisations. The de-identified sample set is global and encompasses results from organisations of all sizes, varying claims records, and a range of lead insurers. It should not be read as a guide in terms of what to expect at renewal, but rather an illustration of the general market trend.
We use three types of calculations within the chart.
1. Weighted premium average: Total the premium spend per quarter, then map the percentage difference between corresponding quarters in different years.
2. Mean average: Take the percentage difference in premium between renewals for each account, sum the percentage differences, and divide by the number of percentage differences.
3. Rolling average: Accumulate data for the last four quarters and divide by four to get a rolling mean average.