July 18th, 2011

Focus on Hurricane Season at July 1, 2011 Reinsurance Renewal: Aviation

Posted at 1:00 AM ET

At July 1, the major risk (airline and manufacturing) sector of the aviation reinsurance market showed stable pricing on a ‘like for like’ exposure basis. Most renewals either quoted or ordered as-before pricing, with similar levels expected for those who had yet to enter the market. This occurred against a back drop of a direct market where soft conditions continued to prevail, with a trend towards rate reductions. Premium levels had been stable through post recession fleet and passenger growth. Although the aviation excess of loss market had not sustained any significant loss since the middle of 2010, reinsurers did not appear to be willing to give any reductions in view of the positive rating environment in other reinsurance lines and the recent occurrence of natural catastrophes.

In the general aviation reinsurance sector the outcome at July 1 was more reflective of individual performance, with ratings movements matching exposure and loss activity. In the US market the expected upward movement did not materialize, with rates now on a more stable basis.

Click here to register to receive e-mail updates >>

AddThis Feed Button
Bookmark and Share


Related Posts