Guy Carpenter, a risk and reinsurance advisory firm, reports in its Global Specialties Market Update that aviation insurance is shifting due to major airline losses and rising smaller-scale claims.
Uncertainties surrounding aircraft losses tied to the Russia-Ukraine conflict were partially resolved by a UK High Court ruling in June, though discussions between reinsurers and clients are expected to continue.
Guy Carpenter notes that reinsurers are leveraging cedant relationships to maintain or expand market share, while specialty reinsurance markets are showing growing interest in aviation risks.
Ceded reinsurance teams are exercising heightened scrutiny when purchasing aviation coverage, reflecting volatility in the sector since 2019. Despite headline losses, Guy Carpenter highlights that ample capacity remains, supporting market stability and orderly January 1 renewals.
Throughout, Guy Carpenter emphasises that ongoing dialogue between clients and reinsurers is essential for smoother renewals and for providing better-priced, well-structured aviation insurance products.
“Despite the headline losses, plentiful supply is available, boding well for continuing market stability and orderly 1/1 renewals,” added Ian Wrigglesworth, Global Head of Aviation & Aerospace Specialty, Guy Carpenter.
“Buyers are noticeably more engaged in their interaction with reinsurers, being particular about the aspects of coverage they seek and striving to understand the nuances of aviation reinsurance,” said Andy Edward, Managing Director of Aviation & Aerospace Specialty, Guy Carpenter.
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