The Aviation Insurance Hard Market factors continue to pile up:<\/p>\n\n\n\n
1. 2018-Present Loss Ratios have cut deeply into reinsurance revenue from several disasters and tragedies worldwide. <\/p>\n\n\n\n
2. Aviation claims, lead by the Boeing losses, are now well over $2B for the same period.<\/p>\n\n\n\n
3. Aviation insurance rates were very low for more than a decade making the segment hardly profitable, if at all. <\/p>\n\n\n\n
4. The pandemic has resulted in much lower airline premiums as many fleets have been significantly grounded. <\/p>\n\n\n\n
The typical hard market duration would see a plateauing of rates for a couple of years followed by a return to softer market conditions. However the pandemic may result in a longer hard market period. <\/p>\n\n\n\n
If Business Interruption claims against insurers, as a result of the pandemic, succeed; the hard market could be extended a few more years. <\/p>\n\n\n\n
Here are some of the ways in which the hard market conditions have changed insurance for aviation risks:<\/p>\n\n\n\n
– Increases ranging from 25% for good risks to 100% for operations considered high risk.<\/p>\n\n\n\n
– Inability to secure insurance for accounts with significant claim histories.<\/p>\n\n\n\n
– Pilots age 69 or older are now scrutinized much more and often denied new coverage quotes.<\/p>\n\n\n\n
– Many turbine aircraft that are 35 years or older are now unable to secure coverage.<\/p>\n\n\n\n
– Reduction in liability limits for accounts not flown by professional, experienced pilots.<\/p>\n\n\n\n
For our part we continue to work hard on negotiations with insurers finding alternative limits and compromises to help our clients get through this period. <\/p>\n","protected":false},"excerpt":{"rendered":"
The Aviation Insurance Hard Market factors continue to pile up: 1. 2018-Present Loss Ratios have cut deeply into reinsurance revenue from several disasters and tragedies worldwide. 2. Aviation claims, lead by the Boeing losses, are now well over $2B for the same period. 3. Aviation insurance rates were very low […]<\/p>\n","protected":false},"author":1,"featured_media":2180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[14,25,29,30],"class_list":["post-2873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-hardmarket","tag-aircraftinsurance","tag-aviationinsurance","tag-boeing"],"_links":{"self":[{"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/posts\/2873","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/comments?post=2873"}],"version-history":[{"count":1,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/posts\/2873\/revisions"}],"predecessor-version":[{"id":3599,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/posts\/2873\/revisions\/3599"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/media\/2180"}],"wp:attachment":[{"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/media?parent=2873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/categories?post=2873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/true-course.com\/web\/wp-json\/wp\/v2\/tags?post=2873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}