Aviation premiums will continue to rise for the next two years, predicts the Aviation Insurance Officers' Association (AIOA).
Chairman Graham Nichols, speaking at the AIOA's annual meeting last week, said the current rate of premium inflation was not sufficient to restore profitability to the market. Claims paid had outstripped premiums for the past four years.
Aviation business processed by the International Underwriting Association in 2000 traded at a loss; a total £490m claims were paid out and £408m premiums received.
Nichols said that 2000 was an average to bad year, but the figures reinforced the continued need for realistic underwriting decisions in coming years.
Nichols and Peter Butler were also re-elected chairman and deputy chairman respectively at the meeting.
The association represents the London aviation market, with nine members writing about 60% of the capital's business.