Willis argues case for aviation product makers

Aerospace product manufacturers are bearing a disproportionate share of aviation market premium, according to a new report from Willis Aerospace. Indeed, Willis criticised insurers for holding the line on further rate reductions for the sector in 2009, despite the record profits insurers derive from the sector and its loss history compared with the airline sector. According to report, Willis Aviation Products Market Review, the aerospace manufacturing sector accounted for 37 percent of total aviation market premium in 2008, even though over the last decade, the sector was responsible for only 18 percent of claims, versus 82 percent for the airline sector. Yet, according to Andre Clerc, chairman, Willis Aerospace, many insurers are refusing to budge on further rate reductions this year, after lowering premiums four percent last year.