AIOA sees hardening of hull rates

LONDON - The Aviation Insurance Offices' Association (AIOA) has saidthere are signs of a hardening in aircraft hull insurance rates."People are talking about rating increases", said AIOA's chairmanGraham Nichols. But he added it was difficult to put a percentagefigure on the rise, and said it was too early to tell whether it wassustainable. The AIOA's annual report said major hull losses ofwestern-built jets in 1999 totalled $985m, the highest ever. Totalhull and liability losses were $1.8bn, down from 1998's $1.9bn.Aircraft hull losses in the first quarter of 2000 are estimated tototal $270m. It hopes loss experience in 1999 and the first quarterof this year will strengthen underwriters' resolve to set out on arecovery path.