An increase in schedule
Whilst September is busier than the summer months that precede it, major renewal activity is still somewhat scarce and provides limited analysis. With the airline insurance market renewal season now in an advanced stage, focus has shifted firmly towards negotiations for the fourth quarter.
As we enter this demanding period, as a whole market conditions remain unchanged from recent months. Underwriters are selective and are categorising airlines by claims, pricing levels and overall profitability margin. Not excluding loss experience, growth in exposures remains a key factor in price negotiations and is a means for underwriters to maintain their premium volume despite average rate reductions.
In terms of losses, the current year to date position remains relatively healthy at this point, due mainly to a low number of liability claims. That said the level of attritional claims continues to be of concern and these types of losses now represent a large portion of the annual figure. With this in mind, airlines that come to market with a high frequency of losses, even if minor, will be met with intense scrutiny and resistance from underwriters, a trend we have witnessed throughout the year so far.
The drive to preserve premium volume in the current market conditions has seemingly spurred some insurers to look to innovation as a means to boost their income. As such a number of new aviation product solutions are known to be in development. These new product solutions aim to address issues such as betterment and attritional loss levels, amongst others, and in turn we will report further on their development as details are finalised.
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For further information, please contact Richard Adams, Partner, Aerospace on +44 (0)20 7466 5220 or email firstname.lastname@example.org