Aviation premiums have fallen 9% for the year to date, according to a market update by Aon Risk Solutions.

Renewal premiums for this year have been $US423.36 million ($407.34 million) compared to expiring premiums of $US466.81 million ($449.1 million).

In Asia, hull and liability premiums have declined by 3% less than the overall market due growing fleets and traffic.

Aon says airlines in the Asia-Pacific region are now enjoying better insurance value than they were 10 years ago.

This is also attributed to the better safety record in many of the region’s countries as well as economies of scale.

Aon is attributing the drop in global premiums to the low number of hull losses this year – down 60% on five-year averages – and healthy competition for attractive risks.

The current loss figures for this year is $US76.62 million ($73.7 million), compared to $US116.68 million ($112.23 million) at the same point last year.

Aon Aviation Business Leader Mike Smith says conditions continue to be positive for buyers of aerospace insurance, but the price continues to represent the risk being placed.

“Organisations forecasting significant growth or with significant losses on their programs will see prices remain stable or even rise,” he said.

“The market has been consistently soft since 2007, and there is little sign of conditions changing in the near term, with programs placed in 2012 so far continuing the trend.”

Meanwhile, Guy Carpenter has reported a drop of between 3% to 5% for aviation reinsurance renewals for the year to date.

Those renewals with increased exposure saw pricing ranging from flat to a small increase, the reinsurer says in a market update. 

The general aviation reinsurance sector renewals have varied depending on the individual market, but the US remains competitive with rates continuing to fall.

“While the reinsurance market remained stable, the direct market continued to see significant rate reductions on all sectors of the aviation portfolio, mainly driven by over-capacity and the absence of significant losses since the middle of 2010,” the market update said.