As we leave the busy month of July behind us, we pause to reflect on the market’s current position as we enter the traditional aviation insurance holiday period in which there very few renewals and many personnel are on annual leave.
Last month we were reporting signs of headwinds to come and a potential shift in market conditions and it would seem that this position does not appear to have altered in July. The three-tier view that we highlighted last month is again apparent in the July renewal results, with each carrier seemingly being individually assessed and rewarded or penalised based on a multitude of criteria.
Whilst the overall year to date numbers still indicate a reduction in premium and rates, as mentioned previously these average figures must be viewed cautiously as behind them the actual results tell a far different picture, with reductions for some carriers coming against the backdrop of double-digit increases for others.
Just whether this recent change in market trend will be sustained long-term remains to be seen. With renewal activity thinly dispersed over the next few months it is likely that we could end up waiting until the final quarter of the year before we are able to truly gauge the effect of any change.
With great uncertainty surrounding the long-term condition of the aviation market and its position, and with much speculation regarding the current global political stance, as our guest lead lines contributor Nick Brown, CEO of Global Aerospace Underwriting points out everyone is asking “what happens next”?
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For further information, please contact Richard Adams, Partner, Aerospace on +44 (0)20 7466 5220 or email email@example.com