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Member, Beacon International Group, Ltd.
Lead hull and liability aviation insurance premiums have fallen by an average of 10% so far during 2012, according to Aon P.L.C.’s latest airline insurance market update.
During October, rates fell by an average of 6%, while during November they fell on average by 13% and during December by an average of 10%, according to the study.
Most airlines renew their coverage during the last quarter of the year.
To date, about 75% of the total expected hull and liability lead premium for 2012-2013 airline insurance programs has been placed, according to Aon, with about a further 40 insurance programs expected to be placed before the end of the year.
Of the 22 renewals recorded during December thus far, just three have seen hull and liability lead premium rates increase, according to Aon.
“Much of the catalyst for the reductions is through insurers’ challenge to meet broader plans for forecast targets in what is a profitable market as a result of the low level of claims in the industry over the last two years,” Aon said. “The industry is to be congratulated for the improved safety conditions.”
LONDON—Airline hull and liability losses totaled about $1.18 billion in 2011, the lowest since 2004, according to London-based consultant Ascend Worldwide Group Holdings Ltd.