2024 Not Starting Off on a Good Foot for the Bean Counters

JAL is in a tough spot after losing their Airbus A350 in the recent incident at Tokyo Haneda, with a $100 million price tag to clean up the mess.

The carrier’s shiny new Airbus A350 was a total loss, though parts of the wings don’t look all that worse for wear. Luckily for the airline, the aircraft will be covered under their all-cause insurance policy, all 15 billion yen worth. Those in the know believe that American insurer AIG is the lead on a $130 million policy. The coverage breaks down to a hull value of $117 million, and a $13 million total loss-only coverage.

It's not a great time for aviation insurers, who were previously in store for "more stability and predictability" according to a Gallagher brief published the day before. The aviation insurance specialist said that "the lack of large US wind events had a positive impact on insurers' and reinsurers' results alike" heading into 2024. Still, more than $100 billion in insured property catastrophe losses took place last year, with significant reinsurance events outside the United States. Stateside, domestic losses from severe convective storms exceeded $59 billion in 2023.

FMI: www.ajg.com