“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 aviation insurance market experienced a decade-long "soft market" with declining rates, driven by increased capacity and competition from private equity investments in reinsurance.
- This trend reversed in late 2017 due to global catastrophic losses increasing reinsurance costs and aviation insurers facing rising loss ratios, making the market unprofitable.
- In response, insurers are now gradually increasing premiums (5-10%) and tightening underwriting guidelines, resulting in less flexibility for aircraft owners regarding training, hull values, and liability limits.
- Aircraft owners should expect higher rates and stricter terms, as these market adjustments are crucial for maintaining the long-term health and viability of the aviation insurance industry and preventing more severe future disruptions.
Key takeaways sponsored by Aviator Pro | Start Your Training ->
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