AON: Airline insurance market remains soft in 4Q2012

AON published (17-Dec-2012) its Airline insurance market update for 4Q2012. The company reported the fourth quarter continues the soft market that has been in place since the start of 2012. Competition between insurers has been "particularly strong", with following markets offering additional savings. Premiums declined by 10% on average, with greater reductions in terms of rates versus premium. Total lead hull and liability premium for 2012/13 is forecast at USD1.6 billion, with around 75% of the total expected lead hull and liability premium recorded for 2012/13 airline insurance programme. Claims levels are significantly lower than the long-term average. Hull losses are "set to be lowest for quarter of a century", with the loss figure for 2012, excluding minor losses, at USD31.6 million, compared to USD530.9 million recorded at the same point in 2011. [more - original PR]