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Airline industry enjoys 18% rate cut

The airline industry saw its lowest levels of losses in history during 2003 resulting in an average reduction of 18% in insurance rates, according to a recent report released by Aon. Terrorism however continues to be an ever-present threat to the fragile aviation sector and the ongoing risk to airlines, airports and civil aircraft is at a higher level than the public may be aware.

Although some insurers stopped providing insurance for airlines in 2003, capacity levels were still sufficient to meet demand. Overall insurance premium volume among the top 182 airlines fell to $2

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