Aircraft insurance market softening: Aon Corp
Aon Corp stated airlines that renewed their hull and liability coverage in Nov-2010 saw their rates increase an average of 19% (Business Insurance, 29-Nov-2010). Of 22 airlines that renewed their rates, only eight had rate increases. The increase was primarily due to three airlines that have suffered losses or left group insurance programmes. Overall, Aon believes the airline insurance market is softening, despite the headline increase in rates. Aon expects total aviation claims this year to be USD1.96 billion, provided there are no further losses. Claims in 2009 were USD2.09 billion. Aon expects aviation insurers to make a fourth consecutive annual loss.