Mumbai: With fewer airlines acquiring new aircraft, flat growth in general aviation and softening of reinsurance rates in the international market, the aviation insurance business of non-life insurance companies has been hit badly. The aviation insurance premium saw a negative growth of 6.57 per cent with a gross premium of Rs 237.05 crore in the six months ended September 30 compared with total premium of Rs 253.73 crore in the same period of last year.
Said a top official of a large public sector general insurer, “Only Indigo and Air India have robust acquisition plans. Other airlines are not acquiring new aircraft. Also, there is no growth in the general aviation sector that includes helicopters, corporate business jets, private aircraft, charters, sports flying, air-taxis, leisure-flying and medical evacuation referred to as medevac.”
“Practically, with no new aircraft being bought, the source of insurance premium has dried up. Also, the competition among the domestic general insurance companies and softer reinsurance rates in the international market has resulted in premium rates falling on an average by 15-20 per cent. On every account underwritten, the premium has fallen. These factors are eroding the growth prospects,” added the public sector insurance official.
20/12/13 Falaknaaz Syed/mydigitalfc.com
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Said a top official of a large public sector general insurer, “Only Indigo and Air India have robust acquisition plans. Other airlines are not acquiring new aircraft. Also, there is no growth in the general aviation sector that includes helicopters, corporate business jets, private aircraft, charters, sports flying, air-taxis, leisure-flying and medical evacuation referred to as medevac.”
“Practically, with no new aircraft being bought, the source of insurance premium has dried up. Also, the competition among the domestic general insurance companies and softer reinsurance rates in the international market has resulted in premium rates falling on an average by 15-20 per cent. On every account underwritten, the premium has fallen. These factors are eroding the growth prospects,” added the public sector insurance official.
20/12/13 Falaknaaz Syed/mydigitalfc.com
