Harvey. Irma. Maria. Otherwise known as “HIM.” Together with California wildfires, these catastrophes will leave the commercial insurance market paying out over $100 billion for claims. What does this have to do with aviation insurance? Plenty. Many of the same capital and companies that participate in the aviation marketplace also write commercial property policies that were affected by HIM. This hit to their earnings has them paying closer attention to all their lines of insurance, including aviation.
At the moment, it appears the aviation market will remain somewhat stable with “flat” to +5% 2018 renewals for many. However, it’s possible some aviation operators, particularly those who’ve had losses or whose operations are higher risk, will have less competition at renewal and therefore perhaps higher premium increases.
This relatively minor market correction does follow 10+ years of steady decreases and “as is” renewals. A case can be made that having “healthy” insurance companies is vital to the aviation industry overall. While we all enjoy decreasing premiums, this 10-year trend was not sustainable.
Rest assured your HOPE brokers have plenty of experience negotiating in a slightly tougher market climate. We’re prepared and ready to help you navigate some uncertain air currents in 2018.