Aon see airline market as “soft,” despite lead and hull and liability numbers

Despite lead hull and liability premium numbers, the airline insurance market appears to be in the process of soiftening, according to the December 2010 edition of Aon’s Airline Insurance Market News.
“The 19% average premium increase in November is influenced by three airlines that have either had losses, come of group insurance programmes or both,” the report says. “Stripping these three from the numbers and the lead hull and liability premium price would have fallen on average by 12% for the month and grown by only 4% during the year.
The report further observes the 2010 results were on pace to result in $2 billion in premiums and $1.9 billion in claims costs. “Taking into account fixed and reinsurance costs, this means the airline insurance market has not achieved a return for four years.”