At the end of last year, the general consensus seemed to be that we would experience a tougher environment in 2017, and a shift of market conditions in favour of the underwriter, as such, there was a sense of anxiousness for the year ahead.
With the early part of the year having drawn to an end and a number of major airlines having renewed, any conjecture as to future trending now seems clearer.
The early indications of change that we witnessed at the end of 2016 appear to have had some weight and from our experience the market has certainly hardened to some degree, although perhaps not as much as some would have hoped or feared. Conditions are stable but largely underwriters appear to be holding a firm position and this in turn is having a tempered effect on renewal results.
That said, despite a number of major renewals to date, it remains premature to draw conclusions for the year ahead as the market could still revert to a softer state as the year progresses and renewal activity significantly increases. There are a large number of major renewals and group placements that take place in July and many will look to these for a true indication of whether this early hardening is likely to be sustained or not. As our Lead Lines contributor comments only time will tell whether “this is an aberration or the start of a new phase in the aviation insurance market”.
Whilst the Airline sector remains the primary area of focus for most underwriters, the other parts of the Aviation Insurance market such as Aerospace, General Aviation and Space remain highly sought after business sectors and as such continue to experience more favourable conditions. We explore these other sectors in greater detail in this edition.
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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