Despite a declining loss trend, the drop in airline insurancerates will likely be halted as reinsurers harden prices to accountfor hurricane claims, according to a brokerage firm report.

The analysis was contained in London-based Aon Ltd.'s "AirlineInsurance Market Review," which predicted the current drop inairline insurance premium costs will slow during theOctober-to-December renewal season, despite a good safety recordfor this year.

The report said U.S. hurricane loss impacts "will spread far andwide among the insurance and reinsurance community. While theaccurate loss estimates have yet to be ascertained, they are almostcertain to lead to a hardening of nearly all markets in the comingmonths."

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