April had more renewals and generated more premium than the whole of the first quarter combined. The level of premium increase for the month dropped to below 10%, less than half that of 2009 and less than two thirds that of the first quarter. This trend continued with the May renewals with premium increases slowing further to just over 7%.

The April and May renewals have therefore offered the clearest indication thus far of the market direction for the rest of the year. The market conditions are going to benefit the airline insurance buyer.

Good news for the airline industry is the undoubted signs of recovery after the economic downturn, with fleet value and passenger exposures starting to increase once more.

The major renewal in April was the British Airways centred group programme which exhibited a reduced average fleet value. The programme however delivered a single digit percentage increase in passenger numbers.
Hainan Airlines was the second largest programme by average fleet value to renew during April. The Chinese carrier highlights the level of development still taking place in the Chinese airline industry with a 22% increase fleet value, 29% increase in passengers and a 34% increase in departures.

The parallel placement of the Virgin Group of Airlines including Atlantic, Blue and America is collectively the largest programme to renew during May.
There have also been some broker and leader changes with Aerolineas Argentinas changing broker from Marsh to Willis, Porter Airlines changing broker from Marsh to JLT, Royal Brunei Airlines moving broker to Aon from Marsh and Transaero changing leader from Global Aerospace to Allianz.

Source: Willis