Rates for aviation hull business fell an average of 16% during 2003, revealed a report from Aon.
The company's 'Airline Insurance Market Review 4th Quarter 2003' report said overall aviation losses totalled approximately $804m in 2003, compared with $1.1bn in 2002.
Of that total, Aon said $353m was paid out for hull losses, $126m for liability losses and about $325m for attritional losses.
The premium base for the world's 182 airlines with fleet values of more than $150m slid to $2.65bn in 2003, an 18% fall on the figure for 2002. The Aon report said this was “narrowly above what is deemed to be the market's minimum acceptable premium level of $2.5bn”.
