Page 19 - The Insurance Times August 2025

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Russian aviation market in the recent Russian aviation insurance Philippines General Insurance Report,
market. The total loss will comprise the general insurance market in the
will remain profitable in
around $10 million of aviation hull and Philippines is estimated to reach
2025 despite Angara Air- the rest as liability claims. Insurers will PHP153.8 billion ($2.7 billion) in 2025,

lines crash cover liability claims related to passen- reflecting an annual growth rate of
ger fatalities, governed by Russian law 9.6%. This growth is attributed to the
Following the news that, on July 24, and the internationally binding rising demand for comprehensive insur-
2025, Angara Airlines Flight 2311, an
Montreal Convention. Initial estimation ance solutions due to frequent natural
Antonov An-24RV turboprop, crashed
of liability claims, based on applicable disasters, the expansion of digital plat-
near Tynda in Amur Oblast in eastern
regulations, could go up to $9 million. forms that enhance accessibility, and
Russia, resulting in the tragic loss of all However, this could further escalate the introduction of parametric insur-
48 people on board—including 42 pas-
based on the investigation report. ance products that provide immediate
sengers and 6 crew.
Russian insurers will bear a major por- financial relief.
A leading data and analytics company,
tion of the loss, as aviation insurers Swarup Kumar Sahoo, Senior Insurance
comments: “This catastrophic accident
retain most of the risk and cede less Analyst at GlobalData, comments: "
will cost around $20 to $25 million to
the Russian aviation insurance market. than 60% of the gross written premi- Heightened climate risks and digital
ums (GWP) to reinsurers during 2020- transformation are reshaping the gen-
Claims paid by Russian insurers for the
24. In 2024, insurers ceded 32.6% of eral insurance market in the Philip-
AZAL plane crash in December 2024,
and this accident will not only reduce the GWP to reinsurers. pines. The government's proactive ap-
the profitability of the Russian aviation proach to disaster response and the
insurance market in 2025 but also in- Philippines general insur- introduction of parametric insurance
crease the reinsurance rate for Russian ance industry to reach are crucial in addressing the protec-
insurers. It signals a growing pattern tion gap, while digital initiatives are
of severe and frequent losses that will $3.9 billion by 2029 making insurance more accessible to
reshape the risk environment for both The general insurance industry in the underserved communities.”
the Russian and international aviation Philippines is projected to grow at a The current insurance penetration
insurance and reinsurance markets, robust compound annual growth rate rate in the Philippines remains low at
which are already reeling under pres- (CAGR) of 10.6%, increasing from below 1.9%, indicating a substantial
sure from the costly Air India plane PHP153.8 billion ($2.7 billion) in 2025 opportunity for growth. The
crash in June 2025. to PHP229.7 billion ($3.9 billion) by government's initiatives to enhance
The crash not only represents an im- 2029, in terms of gross written pre- disaster preparedness, the rising
mense human tragedy but also marks mium (GWP), according to GlobalData, awareness of insurance products, par-
one of the largest single claims events a leading data and analytics company. ticularly among low-income house-

The Insurance Times August 2025 17