NU Online News Service, June 30, 3:40 p.m.EDT

The loss of a jetliner with 153 aboard in the Indian Ocean offthe coast of the Comoro Islands will impact prices in the aviationinsurance market even further, a broker with Aon said.

Operated by Yemen Airways, the Airbus 310-300 crashed around1:50 a.m. local time, a statement from Airbus said. Flight IY626was on its normally scheduled run from Sana'a, Yemen, to Moroni,Comoro Islands, when it crashed.

According to Yemen Airways Web site, the plane held 142passengers and 11 crew members.

Magnus Allan, aviation industry analyst for Chicago-basedinsurance broker Aon, said the accident would "certainly make avery challenging position a lot worse," making insurance renewalsin the final quarter of the year even more expensive.

Twenty percent of the aviation industry has renewed theirinsurance and the remainder will see an even tougher market whentheir policies come due, he said.

"This will add to the upward pressure on aviation insurance,"Mr. Allan remarked.

Before this accident, 2009 losses were exceeding historicalaverages by 10 percent, and this accident would only add to thetrend, he explained.

"Premium increases were averaging 15 percent or more, and itwill continue to be higher than that as the year progresses," saidMr. Allan.

"The main thing to note is that the aviation industry has alwayshad a potential of high catastrophe losses," he advised.

According to several sources HSBC was the lead insurance brokerfor Yemen Airways and ACE Ltd. was the lead insurer. The hull had avalue of $34 million.

A company representative at ACE said the company does notcomment on issues related to claims. HSBC in London did notimmediately return an e-mail request for comment.

This is the second loss of an Airbus in a month while flying inbad weather. Earlier this month Air France Flight 447 crashed offthe coast of Brazil into the Atlantic Ocean, taking 228 lives.Officials suspect clogged pitot tubes, which measure air speed, mayhave been to blame for that accident.

According to reports, French officials say the Yemen Airways jetthat crashed today was barred from flying in French air space,citing numerous problems with the plane.

This particular plane, Airbus said, entered service in 1990 andhas been operated by Yemen Airways since 1999.