The fall in aviation insurance premiums is set to slow in the upcoming renewal season, according to a new report from Aon.
The report said that although the aviation sector had seen limited direct damage from the devastating US hurricane season, the knock-on effect would be that underwriters would try to end this year's run of premium reductions.
This year, rates reductions in the aviation sector have averaged at 7% for liability and hull insurance combined.
Year-to-date hull and liability premiums stand at over $530m, a reduction of 15% for hull and 13% for liability rates. This is in comparison to nearly $575m for January to September 2004.
There is little evidence that the five major airline crashes in August will have a significant impact on renewal premiums, Aon said.