Aerospace premiums down for eighth year in a rowReprints
An Aon P.L.C. report released Tuesday says aerospace sector premiums have fallen for the eighth consecutive year.
The results were due to a lack of significant aerospace claims in the past year and the unprecedented level of capacity that has been attracted to insurance markets, the company's 2015 Aerospace Insurance Market Report said.
In the past eight years, the aerospace sector's lead premium has been decreasing by about 5%. In 2014/2015, it decreased by an average of 8%. The improved risk profiles were attributed to “enhancements in technology, security and working practices,” which have had an impact across the aerospace industry, the report said.
All three sectors of the aerospace market: airport, manufacturer and service provider, saw decreases in lead premiums for 2014/2015. The lead premiums for both the airport and the manufacturing sectors each fell by 8%. The smallest sector of the three units, service provider, saw the largest decrease in lead premiums at 14%, with claims in the service provider sector being lower and more consistent than the other sectors, the report said.
For reinsurers, airline losses in 2014 were so great that they presented some reinsurers with their first claims since 2009, with two large losses for the year seen in the hull and liability market.
The latest concern for the aerospace insurance industry is the potential threat of a cyber-attack in the future, the report said.