23-Sep-2010 10:01 AM

Airline insurance rates rise 7%: Aon

Aon released its 2010/11 Airline Insurance Market Indicators report (Post Online, 22-Sep-2010). The report stated airlines lead hull and liability insurance programmes renewed between Jan-2010 and Jul-2010 have increased by 7% year-on-year. 60% of insurance renewals have seen an increase in premiums, compared with 80% in 2009. Aon stated confidence is returning to the aviation industry, with airlines projecting a 13% increase in passenger volume for 2011 and average fleet values expected to rise by 9%, compared with a 1% increase in 2009. The cost of insurance for airlines is stabilising or even falling in real terms for airlines, according to Aon.