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1、A business of Marsh McLennanJuly 2024General insurance market benchmarking:Aviation insurance market overviewH1 2024ContentsIndustry and market factorsReinsuranceRecent major airline lossesHull War and AVN52Market capacityPremium change analysisAppendixExecutive summaryAs we enter the second half of

2、 2024,the aviation industry generally remains buoyant across all sectors.The rise in airline passenger numbers translates to demand for new aerospace equipment and increased orders for aftermarket products.The general aviation sector is experiencing similar growth.Ongoing challenges arising from tal

3、ent and supply chain shortages continue to present a headwind to the industry.However,a strategic shift in the aerospace sector towards using artificial intelligence tools could help enhance supply chain optimization.We have observed some softening in the reinsurance market,combined with stable capa

4、city available from direct airline,aerospace,and general aviation insurers.This has resulted in somewhat of a downward trend in terms of rates,as insurers compete for income and market share,notwithstanding some significant hull losses in the first half of the year.Geopolitical volatility remains a

5、concern for some war risk insurers.However,we are generally seeing a return to stabilization in relation to Hull War and Excess War Liability placements that we anticipated at the start of the year.We have seen several aircraft turbulence incidents in recent months,possibly linked to climate change.

6、In some cases,the incidents have led to significant passenger injuries.Our team of Marsh specialists are available to support clients in successfully navigating industry challenges of this nature.Garrett HanrahanGlobal Head,Aviation&SpaceExecutive summaryLondon insurance market overviewFactors impac

7、ting the London insurance market during H1 2024Most direct insurers have completed their second cycle of annual treaty reinsurance program renewals.Despite some softening,premium increases continue.The increase in exposures impacts the number of attritional losses advised to the market,which coincid

8、es with a noticeable increase in the quantum of average losses.Significant court awards in the US are of concern should a major incident occur involving passengers.Losses emanating from the Russia-Ukraine war are also of concern.However,overall,the market continues to soften,with more competition am

9、ong insurers for income and market share.The aerospace insurance market has transitioned from a period of fluctuating capacity to one of relative stability.Many insurers remain focused on increasing their market share.For smaller businesses,new insurers are emerging to challenge established market p

10、articipants and vie for lead positions on select accounts.The general aviation insurance market is influenced by numerous factors,with ratings primarily driven by the individual operators profile as much as broader market conditions.Capacity in the market generally remains surplus,with insurers seek

11、ing to expand market share and with new entrants contributing to the total capacity.Overall,market capacity across the aviation industry appears sufficient as we enter the second half of the year.Market factorsAirlines continue to see increases in their exposures with an uplift in the number of pass

12、engers taking international holidays and a return to business travel providing growth.This demand and rising fleet values are fueling the increasing cost of aircraft.However,the limited availability of ground staff,crews,and pilots continues to create pressures on capacity.Furthermore,the ongoing sk

13、ills shortage and competition to hire and retain experienced staff is impacting many airlines and their service providers.The limited availability of new and used aircraft is also creating pressures as airlines look to develop their route networks.In early 2024,the aerospace industry experienced a r

14、evival in product demand,particularly in the US domestic commercial aviation sector.The air travel surge has led to increased demand for new aircraft and aftermarket products and services.Moreover,the industrys strategic shift towards the use of artificial intelligence tools for enhanced supply chai

15、n optimization is testament to its resilience focus.The general aviation market is experiencing growth across all segments and a backlog of aircraft orders.However,continuing supply chain issues arising out of geopolitical instability and other factors,along with workforce shortages,have created str

16、ess points throughout the sector.A growing focus on sustainability,particularly in Europe,has led to pressures for business jet and general aviation operations to decarbonize,somewhat increasing business costs.Growth is a common theme across industry sectors,but organizations face ongoing challenges

17、,including supply chain disruption and human capital shortages.Industry factorsDespite significant Hull losses early in 2024,uncertainty surrounding loss deterioration,and reinsurance costs,the airline insurance market is generally showing a continued desire to compete for market share and income,wh

18、ich appears to be gaining momentum.Some insurers are absorbing exposure increases for similar dollar premiums on attractive risks,resulting in larger technical rate reductions.Hull War and Excess AVN52 war insurers remain somewhat cautious given geopolitical volatility,and so the class remains under

19、 scrutiny.However,increased annual premiums have attracted more capacity,and while total capacity for larger limits remains tight,capacity and appetite are increasing.Significantly reduced rates are being observed as compared to 2022 and 2023.Following a sustained period of aerospace rate increases,

20、market conditions have primarily stabilized.The desire of some insurers to increase their market share is contributing to reduced premiums.For some risks,clients are receiving year-on-year premium reductions.Litigation pertaining to the Russia-Ukraine war continues and may be pivotal depending on th

21、e outcomes.Owing to excess capacity,we continued to see downward rating pressure for general aviation during H1,with reductions at renewal possible in certain situations.Despite this,renewal outcomes remain closely tied to the operators history,business operations,and risk profile.For many insurers,

22、uncertainty remains the prevailing theme with large losses expected later this year.Most aviation classes are experiencing continued competition,mainly driven by the somewhat buoyant capacity.Current statusAirlinesGeneral aviationAerospace5Airlines Premium change analysisAdditional market considerat

23、ionsIncreasing reinsurance cost.Losses emanating from the Russia-Ukraine war remain somewhat unresolved.Concerns over attritional losses persist as fleets return to pre-COVID-19 levels,but with somewhat less experienced staff.Competition remains strong among aviation insurers to increase their marke

24、t share.Pressure is on lead insurers not to depart from competitive rating terms and conditions offered by following insurers.Key rating factors Insured safety record and loss history.Geographical risk.Aircraft,passenger,and departure exposure movement.Limits of liability purchased.Source:Marsh Spec

25、ialty and Global Placement-5%0%5%10%15%20%25%22 Q322 Q423 Q123 Q223 Q323 Q424 Q124 Q2Gross premium change%Weighted average changeMean average change6AerospaceManufacturers and maintenance,repair,and overhaul(MRO):Premium change analysisSource:Marsh Specialty and Global Placement9.37%0.18%7.10%4.38%-

26、15%-10%-5%0%5%10%15%20%25%22 Q322 Q423 Q123 Q223 Q323 Q424 Q124 Q2Gross premium change%Weighted average changeMean average changeWeighted average rolling four quartersMean average rolling four quarters7AerospaceAirports and service providers:Premium change analysisSource:Marsh Specialty and Global P

27、lacement2.74%0.51%7.16%6.45%-5%0%5%10%15%20%25%22 Q322 Q423 Q123 Q223 Q323 Q424 Q124 Q2Gross premium change%Weighted average changeMean average changeWeighted average rolling four quartersMean average rolling four quarters8General aviationPremium change analysisGraph commentaryRating trends seem to

28、have stabilized through Q1 and Q2 2024,following the final two quarters of 2023.So far in 2024,market capacity has remained buoyant,keeping renewals at“as before”levels,with reductions achievable on well-performing accounts.With new insurers entering the Hull War and AVN52 markets,rate increases hav

29、e slowed,with“as before”to+10%generally becoming the norm.Overall,despite several outstanding claims still to be resolved and reinsurance costs generally rising,capacity is helping to preserve a somewhat stable rating environment.Key rating factors Limit of liability purchased and any self-insured r

30、etention.Aircraft type.Overall fleet value and size.Geographic area of operation and aggregation of hull exposure.Business operation.Loss history.Companys operating model and safety record.Source:Marsh Specialty and Global PlacementNote:General aviation risks include the following coverages:Hull War

31、,personal accident,Excess AVN52,Hull Deductible.10.32%-2.78%8.03%2.96%-15%-10%-5%0%5%10%15%20%25%22 Q322 Q423 Q123 Q223 Q323 Q424 Q124 Q2Gross premium change%Weighted average changeMean average changeWeighted average rolling four quartersMean average rolling four quartersSource:Marsh Specialty and G

32、lobal PlacementAirline insurance market overview Potential maximum London line size based on a clean loss experience Major passenger airline with US$2bn combined single limitN.B.Line sizes are estimates only and should only be taken as a guide.Markets reserve the right to decline a risk or to deploy

33、 their capacity in line with their individual risk appetites.Source:Information provided by insurers as gathered,aggregated,and understood by Marsh.Non-USUS267.76%211%Aerospace insurance market overview Potential maximum London line size based on a clean loss experience Major aerospace risk with US$

34、1bn combined single limit328.5%N.B.Line sizes are estimates only and should only be taken as a guide.Markets reserve the right to decline a risk or to deploy their capacity in line with their individual risk appetites.Source:Information provided by insurers as gathered,aggregated,and understood by M

35、arsh.General aviation insurance market overview Potential maximum London line size based on a clean loss experience General aviation fleetN.B.Line sizes are estimates only and should only be taken as a guide.Markets reserve the right to decline a risk or to deploy their capacity in line with their i

36、ndividual risk appetites.300.00%248.50%435.00%263.50%Source:Information provided by insurers as gathered,aggregated,and understood by Marsh.Hull War potential capacity 2019 to date*12$0$100$200$300$400$500$600$700$800$900201920202021202220232024Potential dollar line(US$m)LloydsLondonRest of the worl

37、d*Since 2022,capacity has been deployed by insurers on a risk-by-risk basis.H1 2024:Hull War generally remains a divided market with some leaders seeing supporting insurers offering competitive terms for increased capacity.While many underwriters remain sensitive to further losses,new capacity has r

38、e-joined the Hull War market as the annual premium is approaching a level that appears sufficient for their models.AVN52 potential capacity 2019 to date*13H1 2024:AVN52 insurers remain generally cautious of the unsettled geopolitical situation,which has resulted in the class remaining under scrutiny

39、.Increased annual premiums have attracted more capacity,and while total capacity for larger limits still remains tight,capacity and appetite appear to be increasing,meaning that higher limits are possible and premiums are starting to reduce significantly compared to 2022 and 2023.$0$200$400$600$800$

40、1,000$1,200$1,400$1,600$1,800$2,000201920202021202220232024Potential dollar line(US$m)LloydsLondonRest of the world*Based on a combined single limit basis.Double aggregate to be reviewed with more scrutiny.The changing Hull War market*2022-2024 summary1.Generally,the market has experienced withdrawa

41、ls of capacity in recent quarters and increased selectivity of underwriting:2.However new entrants engaged in 2023:3.This is encouraging some differentiation based on the following considerations:AggregatesDomicileOperationsFleet sizeADNICAXA XLChaucerPICCTalbotFactors impacting the Hull War market:

42、Reinsurance costsMarket losses:-Russia-Ukraine war-Sudan conflictLimited capacityScrutiny on aggregate managementAIGCV StarrEverest ApolloArk AscotAllianz via Hive*Information provided by insurers as gathered,aggregated,and understood by Marsh.And one new entrant engaged in 2024:Specialty MGA The ch

43、anging Excess AVN52 market*15CoveragePressure on primary excess points to US$350m.Insurer movement towards“excess”basis rather than“difference between”.Capacity restrictionsContinued pressure on placements from limited capacity,especially for larger limits.Premium increasesInsurers seeking rate and

44、premium increases.Automatic reinstatementDevelopments around automatic reinstatement provisions.Lack of consistency in relation to coverage.Pricing implications possible.Excess AVN52market*Information provided by insurers as gathered,aggregated,and understood by Marsh.$3,041$489$58$385$309$0$500$1,0

45、00$1,500$2,000$2,500$3,000$3,50020192020202120222023Sum of lossesUS$10m(US$m)Sum of lossesUS$10m(US$m)Average10 recent major losses in excess of US$10 million5-year comparison16Major loss analysis recent losses in excess of US$10 millionSource:CiriumNote:Including airline hull,airline liability and

46、product liability losses.Ciriums loss information is derived from a number of sources and may not reflect the latest reserving or final settlement figures.US$856m five-year averageDate of lossOperatorAircraft typeLocationLoss typeAccident category18-02-2024Air SerbiaE195SerbiaTotal LossAll Risk18-01

47、-2024Ethiopian AirlinesDHC-8-400(Q400)EthiopiaTotal LossAll Risk02-01-2024Japan AirlinesA350-900JapanTotal LossAll Risk01-11-2023Saudia787-9Saudi ArabiaMajor Partial LossAll Risk04-10-2023FedEx757-200FUnited States Total LossAll Risk21-09-2023DHL Aviation767-300ERFLebanonMajor Partial LossAll Risk12

48、-09-2023Ural AirlinesA320-200RussiaMajor Partial LossAll Risk09-07-2023Air Canada777-300ERCanadaMajor Partial LossAll Risk04-05-2023LATAM Airlines787-8ColombiaMajor Partial LossAll Risk18-04-2023BADR Airlines737-800SudanTotal LossWar RiskReinsurance market trends through January 1,2024Minimum excess

49、 of loss(XoL)retentions are now generally US$250m original loss(OIL)and/or ultimate net loss equivalent,whichever the lesser.Vertical limit bought within the XoL program is generally unchanged,albeit certain US insurers have increased combined single limits(CSLs)from 2023.Continued removal of drop d

50、owns for non-ABC and/or general aviation(GA),with a specific focus on US exposures.Some additional GA specifics placed to cater for increased retention.Reinsurance market stabilized while continuing to press for rate increases:AV52 limitation to primary US$350m for all aviation sub classes.Changes i

51、n coverage effective since July 1,2023 on the original policy attachment:Major risk Hull War exclusion remains but greater flexibility around“embedded/in conjunction with”GA Hull War,where detailed information is provided.Sideways caps included.Contingency coverages are attracting less attention as

52、the original market has tightened limits.Grounding greater clarification of grounding coverage(viz.definition of primary US$250m)made effective January 1,2024.The wording of the Russia-Ukraine-Belarus(RUB)exclusion was more consistently observed at January 1,2024 to say“directly arising from”.Additi

53、onal deterioration of a major loss advised November 2023.Widespread concern this may worsen again in 2024.Russian leasing litigation remains in the background,despite recent announced settlements.Limited reserving to date.Greater clarity expected as legal proceedings progress.Source:Guy CarpenterRei

54、nsurance market looking for continued rate increases to reflect continued payback and economic/social inflation.Reinsurers generally achieved in the region of 7.5%-12.5%“risk adjusted”rate increases for XoL programs.Minimum Rate on Line(RoL)generally 3.75%(“major risk clash”).XoL rate increases were

55、 generally confined to the middle/top layers,with primary layers deemed adequately priced.Size of increase variable by exposure change,loss deterioration,portfolio mix,capacity required,and pricing adequacy.No disruption to XoL reinsurer capacity/risk appetite.Quota share(QS)and risk excess:QS capac

56、ity is stable overall,although some reduced lines from certain long-term reinsurers has been replaced by others.QS ceding commissions/PCs under continued pressure has led to more“verticalized”placements.Some reinsurers continue to try to implement QS sideways caps,but face resistance.Risk excess cap

57、acity remains tight and sideway caps remain in place.In the absence of further losses/loss deterioration,XoL pricing is likely to stabilize in 2024.Initial fears of a retro capacity shortage following the withdrawal of a major market player from this class have been allayed as existing and new capac

58、ity,attracted by the strong rating,stepped forward.No withdrawals from the Gen XoL business.General(Gen)XoL capacity has grown,and there is growing appetite for reinsurers to quote for their own shares.Some new capacity during 2023 and a transfer of some capacity on January 1,2024.Recent loss deteri

59、oration announcements are underlying the retro markets resolve to maintain strong rating levels.Reinsurance market trends through January 1,2024Source:Guy CarpenterReinsurance market trends in 2024Underlying market dynamicsExcess of loss treatiesMajor risks exposures generally back to pre-COVID-19 l

60、evels and rising.Rating under pressure,but premium levels holding due to exposure growth.Cost of losses increasing due to US jury verdicts,higher repair costs,and strengthening asset values.Continued uncertainty over the outcome of Russia-Ukraine contingent leasing losses until legal outcomes determ

61、ined.New high-value losses,e.g.,product grounding(Alaska)and JAL landing loss.Likely further prior-year loss deterioration,partially mitigated by increasing interest rates.Market capacity abundance is likely to prevail across most business segments.Premium rating environment unlikely to change witho

62、ut significant further loss(es)or an external influence.Current rating levels are attracting more capacity.Existing markets are seeking growth opportunities.A lead reinsurers relaxation of RUB language has enabled re-engagement.Continued available capacity may subdue reinsurers“differentiation”.Limi

63、ted“verticalization”,but this could change.Retentions likely to remain generally unchanged.Pricing could remain generally flat subject to no external factors and/or no significant new claims/deterioration.Pressure to push up minimum ROLs will likely remain,especially in the presence of US liability

64、exposure.Proportional treaties Further softening in original terms and conditions will likely increase pressure for reinsurers to reduce major risks participations.Risk excess covers Pressure to reduce ceding commissions.Likely increase in“verticalization”of terms and conditions.Some growing disloca

65、tion in the balance between reinsurer relationships and financial optimization.2018US$175mpremiumattachmentUS$150m OILUS$600+mpremiumattachmentUS$250m OIL2023Market results remain in the red following substantial losses in 2018 and 2019.Post-2019,significant premium growth and increased average rete

66、ntions.Predominantly a tool for US GA portfolios to enable large Hull/Liability limits.Appetite to support the product has reduced somewhat in recent years despite premium increases.Unlikely to see any fundamental changes but remain a limited-supply product.Source:Guy CarpenterAdditional loss deteri

67、oration advised in November 2023 and again in early 2024.Minimum XoL retentions generally US$250m part of an original limit of US$2.5bn for a major airline.Vertical limit bought within the XoL program is generally unchanged,albeit certain US carriers have increased primary limits from 2022 and 2023.

68、April 1 renewal outcomesRussian leasing litigation remains in the background,despite recent settlements.Limited reserving to date,but greater clarity expected as cases come to court.Q1:0 to 5%“risk adjusted”rate increases for XoL programs focused on mid-to-top layers.Q2:Flat and growing pressure wit

69、h pressure on minimum ROLs for top layers.Q1:Minimum RoL 4%(“major risk clash”).Q2:More focus on reducing these.Major risk QS:Pressure on commission and capacity available due to increased softening in many of the primary market terms and conditions.General aviation QS:Ceding commission levels holdi

70、ng and capacity available due to the general profitability of the business class.H1 2024 review Current XoL rating levels are attracting more capacity.Existing reinsurance markets seek growth opportunities.New lead capacity.Major reinsurer:Relaxation of RUB language.Growing potential for verticaliza

71、tion:-Loss paying vs.non-loss paying.-Traditional verticalization for own share.Risk adjusted pricing stable.Vertical limit purchased remains unchanged.SupplyDemandPricing Some clients want to move narrative away from major risks in response to limited capacity and increasing rates.Reinsurance marke

72、t trends through April 1,202420Source:Guy CarpenterRussian leasing:Litigation outcome remains uncertain.Large residual value remains after 2023 Russian insurer settlements.InsuranceEstimated HW net premium:US$500m airline and GA,US$250m contingent,and US$250m-US$300m XS AVN52.The Khartoum Airport lo

73、ss added momentum to rating up to Q3 2023,but this has since diminished,and rates are now largely under pressure.Policy coverage tight with pressure on reducing confiscation aggregates.AerCap/Aeroflot deal.UK court pressure for mediation.No new entrants yet in 2024 but some capacity increase.2024 ra

74、te change estimate:+0%to-5%.Reinsurance aviation war market trendsReinsuranceXoL capacity has increased.Event definition of“24 hours and 10 miles”prevails,however broader definition is available:“48 hours and 10 miles for all perils other than confiscation(a.o.country)and hijacking(24 hrs)”at an add

75、itional cost.Confiscation sub-limit remains unchanged at US$350m.WEF 1.7.23 Primary AV52 limited to US$350m for aviation sub-classes.Russia-Ukraine-Belarus language is more commonly“directly arising from”.2024 rate changesHull War(HW):Airlines-flat to 5%GA -flatLeasing-flatXSAVN52:+15 to+30%Source:G

76、uy CarpenterNuclear reinstatement language22The objectiveAll airlines globally would potentially be grounded by immediate automatic termination of liability cover.Aircraft already in flight would remain insured until landed and engines shut down.Several versions of a clause,intending to provide some

77、 level of continuity of cover following a hostile detonation,are now available.However,there are three principal areas where the proposed wordings differ.1.48 hours versus seven days additional cover outside the“blast zone”.2.Extension only applicable to the Russia-Ukraine war.3.Extension restricted

78、 on the number of hostile detonations.Following a hostile nuclear weapon detonation,the entire aviation industry(including airlines)would be faced with immediate automatic cancellation of liability cover,regardless of where the detonation occurred and what type of weapon was involved(tactical or oth

79、er).The language recognizes that termination of coverage may not be desired or necessary in all cases,allowing for a tailored approach to managing the impact of a hostile detonation event.The expressed(re)insurer intention of the nuclear reinstatement language is to provide for continuity of coverag

80、e after a hostile detonation triggers automatic termination,allowing a“breathing space”of between 48 hours and seven days during which(re)insurers and the insured can look to continue coverage under reviewed and agreed terms,limits,conditions,and geographical limits.23Nuclear reinstatement languageH

81、istory and current statusThe current policy wording language relating to War Risks was drafted at a time when the hostile detonation of a nuclear weapon was considered a“doomsday”scenario.However,the advent and proliferation of tactical nuclear weapons mean that now such an event could be more local

82、ized.The Russia-Ukraine war has brought the prospect of such an event into focus.London aviation insurers have discussed the potential implications of automatic termination in recent months.Responses have been individualized with different views and solutions offered.Varying approaches have created

83、a potential“jigsaw puzzle”of coverage.While generally inconsistent,the reinstatement provision is still considered better than the previous position of automatic termination.Many hope that greater consistency in approach lies ahead.24Automatic termination clauseHull&Liability Update:LIIBA AV002LIIBA

84、 AV003AXA XL AV0017AGlobal 191Global 191BGlobal 191(Fidelis amended 23/11/22)Automatic terminationAny cover extended within:500km of the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.upon the first hostile detonation.Any cover extended within:500

85、km of the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.upon the first hostile detonation.Any cover extended within:500km of the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.Within Republic o

86、f Belarus,Russian Federation,and Ukraine(including disputed regions and Crimean Peninsula).upon the first hostile detonation.Any cover extended within:500km of the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.upon the first hostile detonation.An

87、y cover extended within:500km from the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.Within Republic of Belarus,Russian Federation,and Ukraine(including disputed regions and Crimean Peninsula).upon the first hostile detonation.Any cover extended

88、within:500km of the point of detonation.Country of launch.Country responsible for.Country where the detonation occurred.upon the first hostile detonation.Any additional applicable territories to be excluded to be advised within 48 hours from the hostile detonation.Non-automatic termination,limited c

89、ancellation(timeframe)Insurers may give notice to review premiums,geographical limits,and/or issue a 48-hour notice of cancellation,seven days after detonation,of one or more parts of the remaining cover within 30 days of detonation.Additional premium:TBA.In respect of the deletion of sub-paragraph(

90、a)of clause AVN 48B,cover terminates automatically seven days from hostile detonation in all other geographical areas not listed above.Insurers may give notice to review premiums,geographical limits,and/or issue a 48-hour notice of cancellation,seven days after detonation,of one or more parts of the

91、 remaining cover within 30 days of detonation.Additional premium:TBA.Terminates automatically seven days from hostile detonation.Insurers may give notice of cancellation of one or more parts of the cover.Insurers may reinstate coverage at terms,limits,conditions,and geographical limits as agreed by

92、each insurer.Additional premium:TBA.Terminates 48 hours from hostile detonation.Insurers may give notice of cancellation of one or more parts of the cover.Insurers may give notice to amend the premium and/or geographical limits.Terminates automatically 48 hours from hostile detonation.Insurers may g

93、ive notice of cancellation of one or more parts of the cover.Insurers may reinstate coverage at terms,limits,conditions and geographical limits as agreed by each Insurer.Terminates 48 hours from hostile detonation.Insurers may give notice of cancellation of one or more parts of the cover.Insurers ma

94、y give notice to amend the premium and/or geographical limits.Subsequent hostile detonationProvisions of AVN52E/G apply unamended.Provisions of AVN52E/G apply unamended.Provisions of AVN52E/G apply unamended.Provisions of AVN52E/G apply unamended.Provisions of AVN52E/G apply unamended.Provisions of

95、AVN52E/G apply unamended.N.B.Automatic termination clause as of July 1,2024.Description of insurer offered clauses are examples and should only be taken as a guide.Insurers reserve the right to decline to offer such wording or to offer adjusted wording in relation to individual risks.25How we presen

96、t market trendsMean vs.weighted average explainedAirline2022 premium2023 premium%changeOne airline1001022%Two airlines15018020%Three airlines1,0001,0303%Totals1,2501,312Mean premium change is the mean average of the individual airline percentage increases.(2%+20%+3%)/3=8.33%Weighted average is calcu

97、lated by summing the entire portfolio for each year and showing the percentage change between these.(1,312-1,250)/1,250=4.96%This can be distorted by a small account with a large percentage change.As weighted average uses premium volume,it may distort the percentage change applicable to airlines whe

98、re premium volume is low.Summary:Weighted average considers premium volume and mean average does not.Copyright 2024 Marsh Ltd.All rights reserved.A business of Marsh McLennanThe information contained herein is based on sources we believe reliable and should be understood to be general risk managemen

99、t and insurance information only.The information is not intended to be taken as advice with respect to any individual situation and cannot be relied upon as such.Registered in England and Wales Number:1507274,Registered Office:1 Tower Place West,Tower Place,London EC3R 5BU.Marsh Specialty is a trading name of Marsh Ltd.Marsh Ltd is authorised and regulated by the Financial Conduct Authority for General Insurance Distribution and Credit Broking(Firm Reference No.307511).MC240728458.