Brokers Aon and Willis report that aviation premiums are flat to low, with Willis reducing premium for clients 7 percent. (Aviation risk is primarily covered in London.)
Steve Doyle, business development and sales director/aerospace with Willis, says, “Of the major international [aviation-related] catastrophe risks, probably in excess of 90 percent have some involvement from London underwriters.”
For the aviation industry as a whole, Willis says, average fleet value has grown by 8 percent and passenger numbers have increased by 16 percent, but premiums are down by 1 percent.
The findings are similar to those in a report released earlier this week by Aon that also says premium rates are down by 1 percent.
Willis says the declines can be contributed to “abundant capacity” and loss levels being at a six-year low.
“This backdrop would suggest that there is little to halt the slide in premium levels,” Willis adds.
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