AssuredPartners warns of a bumpy ride in the aviation insurance market

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AssuredPartners Aerospace advises aircraft operators to “hold your ground” as the next 12-18 months will be a bumpy one in the aviation insurance market. The insurance brokerage firm noted that more details – and litigation – are emerging from the losses resulting from the Russian invasion of Ukraine, as well as the fallout from the Boeing Max.

“We’re hearing from insurance companies that 2023 could be one of the toughest markets we’ve ever seen,” warned Josh Jabour, director of sales at AssuredPartners Aerospace. “It’s not just for big planes, piston pushers will also pay their share.”

The brokerage firm pointed to a lawsuit filed by aircraft lessor Aircastle against several Lloyd’s insurance and syndicates for failing to cover more than $265.9 million in damages related to Russia’s invasion of Ukraine. . “This is not the first court case associated with the aviation insurance market and the war in Ukraine,” AssuredPartners noted, pointing to a lawsuit filed by Carlyle Aviation earlier this year against 30 insurers for $700 million. dollars and another from Dubai Aerospace against 11 insurers.

Additionally, Boeing’s claims related to the 737 Max swelled to $3 billion – “the largest in aviation market history in nominal terms, after the $2.5 billion paid after 9/11 “.

All of this will drive up renewal rates and these events “have thrown the market into uncertainty, with some sources lamenting Ukraine’s lack of reserve for losses.”

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