After the longest soft market period in living memory, the airline insurance market is beginning to harden, according to Aon's Airline Insurance Market Indicators, Autumn 2008. Aon reports that the insurance market is hardening for the first time in five years with a five percent increase in lead hull and liability premium between January and July 2008. Underwriters have been taking a tough stance to renewals so far this year, a position that will continue for the rest of the year and probably into 2009. The hardening is being driven by the loss that underwriters suffered in 2007 as a result of the relatively high level of incidents coupled with the soft market conditions. Lead hull and liability premium prices fell on average by 11 percent in 2007 and 17 percent in 2006, so underwriters are increasing prices in 2008 to recoup their losses, said Aon.