O37Cherokee
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- Apr 16, 2013
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I'm sure many of you have already seen this, but it is an email from my carrier. Shows how much world politics effect us.
AssuredPartners Aerospace
Until the war in Ukraine, the aviation insurance market could be described as “stabilizing” after a couple years of volatility with higher premiums and tighter underwriting. However, and hopefully perhaps only for the short-term, the Ukrainian war immediately brought uncertainty back into the worldwide aviation insurance market.
According to Business Insurance, “the impact of Russia’s invasion of Ukraine represents the biggest potential loss to the aviation war market since 9/11.” One leasing firm alone has reportedly already filed a claim of approximately $3.5B for aircraft and engines they say have effectively been seized by Russia. And, because the aviation insurance arena is so small, what happens around the world at this magnitude can have cascading, detrimental effects on the US aviation insurance market.
In addition, the well-publicized spike in fuel prices could have another cooling effect on aviation operations. Generally, less air activity combined with higher operating costs equates to more frequent requests for reduced coverage, taking premium dollars away from an already-small market.
Aviation insurance buyers should therefore remain on the alert throughout 2022 for potentially quick changes to the aviation insurance marketplace that might affect either their current insurance program or their next renewal. Our team of insurance professionals is closely monitoring these developments and will continue to advocate for your best aviation risk solutions.
Thanks for your business and your continued confidence in us.
Safe Flying,
Jon Downey
AP Aerospace President
AssuredPartners Aerospace
Until the war in Ukraine, the aviation insurance market could be described as “stabilizing” after a couple years of volatility with higher premiums and tighter underwriting. However, and hopefully perhaps only for the short-term, the Ukrainian war immediately brought uncertainty back into the worldwide aviation insurance market.
According to Business Insurance, “the impact of Russia’s invasion of Ukraine represents the biggest potential loss to the aviation war market since 9/11.” One leasing firm alone has reportedly already filed a claim of approximately $3.5B for aircraft and engines they say have effectively been seized by Russia. And, because the aviation insurance arena is so small, what happens around the world at this magnitude can have cascading, detrimental effects on the US aviation insurance market.
In addition, the well-publicized spike in fuel prices could have another cooling effect on aviation operations. Generally, less air activity combined with higher operating costs equates to more frequent requests for reduced coverage, taking premium dollars away from an already-small market.
Aviation insurance buyers should therefore remain on the alert throughout 2022 for potentially quick changes to the aviation insurance marketplace that might affect either their current insurance program or their next renewal. Our team of insurance professionals is closely monitoring these developments and will continue to advocate for your best aviation risk solutions.
Thanks for your business and your continued confidence in us.
Safe Flying,
Jon Downey
AP Aerospace President
