Aon: Insurance Premiums Are Down For Airlines
According to Aon, a risk management, reinsurance and "human capital consulting" group, the aviation industry average hull and liability lead premiums fell in the first nine months of 2007 by 15 percent. Of 112 programs for which the company has renewal data, Aon said that 55 percent had seen reductions in hull and liability premiums of more than 10 percent while fleet values and passenger numbers have increased by 11 and 12 percent, respectively. Aon attributes the shift in part to insurers' relationships with airlines and the fact that aviation experiences a "relatively low level of incidents." Plus, Aon says passengers are seeing significantly improved chances of escape when compared to years past, according to a report by Thomson Financial News.