“Let the good times roll” may have been an appropriate mantra for aviation-insurance consumers during the past 10 to 12 years, but the party might finally be over.
Aviation Insurance is Changing
Key Takeaways:
- The decade-long period of declining aviation insurance rates and a "soft market" has ended, driven by increased competition and capacity.
- Global catastrophic losses and rising aviation-specific loss ratios have prompted insurers to increase premiums (5-10%) and tighten underwriting guidelines.
- These market adjustments are crucial for the long-term health and viability of the aviation insurance industry to prevent more severe disruptions and carrier exits.
- Aircraft owners should expect higher rates and more stringent terms, though even with increases, current costs are often still a good value compared to historical levels.
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