In spite of some large claims, insurance cost for the airline sector globally is likely to fall this year and for the domestic carriers due to intense competition and better risk management practices by the industry, says an international aviation insurance expert. This comes as a double bonanza for the bleeding airlines due to the steep fall in fuel prices following the massive crash in crude prices since the middle of last year. This is despite some large claims in overseas markets following a string of air crashes in the recent months like the Germanwings, a subsidiary of Luftansha, in March which was crash-landed by its junior pilot. "Despite a rise in volume in aviation insurance business here, the overall premia have fallen as the rates have remained soft in the global markets. We do see premia falling further here in the days to come. The reason being that there is too much of competition in the market,'' Martin Stevans, chief underwriting officer at Global Aerospace, a unit of AIG, told PTI.
03/07/15 PTI/moneycontrol.com
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03/07/15 PTI/moneycontrol.com
