Aviation premiums fall

International

Over capacity and a historically low level of losses in the aviation insurance market have caused overall premiums levels in the market to fall by 11.0% in 2007, according to the most recent review of the market by broker Aon. However, this headline figure masked a wide variation among the various business sectors (the airlines, airports and manufacturers) and geographical areas (Asia, Europe and the Americas). For example, aviation businesses based in Asia received the best average reduction at 8%, closely followed by Europe and the Americas with 7% and 6% reductions respectively. Airlines saw the largest reductions in 2007, with lead premium falling by 11% on average compared to a 4% increase in 2006.