“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:
- A decade-long period of declining aviation insurance rates, driven by high capacity and competition, has ended.
- The shift to a harder market is due to global catastrophic losses impacting reinsurers and increasing loss ratios within the aviation insurance sector, leading to unprofitability for carriers.
- Aircraft owners can now expect gradual rate increases (5-10%) and stricter underwriting guidelines, with reduced flexibility on training, hull values, and liability limits.
- These market adjustments are necessary for the long-term health of the aviation insurance industry; consumers should prepare for higher costs and work closely with their brokers to navigate the changes.
Key takeaways sponsored by Aviator Pro | Start Your Training ->
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