HomeLONDON, Dec. 18, 2007 (Thomson Financial delivered by Newstex) -- The aviation insurance industry could see its first unprofitable year of underwriting since 2000, research from US broker Aon (NYSE:AOC) Corporation has shown.
This year to date, average aviation insurance prices have dropped 12 pct, the broker said. This has not been helped by the fact that total premium is likely to be below this year's claims, which currently stands at 1.53 bln usd, compared to 1.23 bln usd last year.
If the level of reduction for the remainder of the year keeps up, hull and liability premiums - the main indicator of rates in the airline insurance market - will total 1.46 bln usd, down from 1.69 bln usd in 2006 and 2.04 bln usd in 2005. Aon says that aviation insurance prices have fallen around 40 pct over the last two years.
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21738510.htm
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