Airline insurance-buyers in 2011 saw premium levels drop 2.4%, compared with 1.3% for the aviation manufacturing sector, according to Willis’ latest market review.

Total airline insurance premiums in 2011 were $US1.9 billion ($1.85 billion), against claims of $US1.1 billion ($1.07 billion).

Total reported 2011 premiums for aviation manufacturing insurance were $US657.9 million ($641 million).

According to Willis, insurance renewals across all aerospace sectors saw a rate reduction of 1.8% compared with 2010.

This created the first profitable year for the airline insurance sector in five years, Willis Aerospace Chairman Mark Wilford says.

“The aviation industry is returning to good health,” he said.

“New technologies continue to deliver improved long-term safety records and fleet/passenger numbers are growing.”

There were 30 total losses of western-built aircraft in airline service in 2011, down from 46 in 2010 and the lowest number recorded.

Passenger numbers increased 5% from 2010, yet overall passenger fatalities continued a steady 10-year decline.

Some 184 passenger fatalities were recorded last year, compared with 648 in 2010.

The five-year average fatality rate per million passengers decreased to below 0.2.

Aon says the airline insurance market has continued to soften during the first four months of this year.

“Premium volumes have fallen on average by 10% so far this year, although this is heavily influenced by a program that acquired another large airline,” the insurer said in its latest market report.

“Stripping this program out of the 2012/13 data, the current average lead hull and liability premium change is up 1%.”

So far this year there have been 22 renewals by airlines, with the total new premium at $US145.15 million ($143.34 million), compared to the expiring figure of $US160.84 million ($158.83 million).

Aon says claims in the first four months of this year have been “extremely low”.

The loss figure to the end of April was $US35.02 million ($34.6 million), compared to $US65.07 million ($64.3 million) recorded at the same point in 2011.