Gallager, the UK insurance broker, has provided an update on the aviation insurance market in its latest Plane Talking newsletter. Some key themes from the team on the market conditions include foremost that core pricing is stable “surprisingly” says Gallager given the ongoing challenges and outstanding claims mainly due to excess market capacity keeping all risks insurance rates stable and most airlines are generally experiencing improved results. However, hull, war and liability war markets continue to harden. In the absence of any new developments or major losses, Gallagher expects that in the short-term these market trends “will endure for the rest of 2023”.
The broker also observes a “steady flow of insurers” entering the market during the past six months, both by way of new entrants and via increased line sizes and changes in underwriting appetites from established players.
In summary, the aviation reinsurance market remains challenging, says Gallagher. “Pricing has continued to harden as the current round of programmes coming to market align with earlier renewals in terms of further upward pricing adjustment, post further major loss deterioration seen in the last quarter of 2022”.