Tata AIG General Insurance Company, the Indian joint venture of Tata and AIG, has been selected as the new lead insurer for Air India’s account, according to reports from The Indian Express.
The publication reports that New India Assurance had been the lead insurer for the account of Air India for decades but lost its tag for the first time to Tata AIG during the renewal of cover for 2023/24.
By switching out its lead insurer, sources say that Air India was able to maintain last year’s premium of $30 million at a coverage level of $10 billion, despite hardening conditions in the reinsurance market.
Led by AIG, a panel of global reinsurers, including India’s GIC Re, have reinsured some 95% of the cover, The Indian Express reports, including New India Assurance, United India Insurance, Oriental Insurance Company and National Insurance Company, Tata AIG General Insurance and ICICI Lombard General Insurance.
While India’s aviation insurance market currently only involves around 700 commercial aircraft, some of the larger airlines could be looking to grow their fleets soon, possibly depending on the outcome of upcoming insurance renewals, analysts suggest.
Air India itself has announced plans to acquire 470 new aircraft from Airbus and Boeing over the next couple of years, reports indicate.