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Aviation Blog

U.S. Aviation Insurance Market Stabilizes in First Half – Aviation International News


The aviation insurance market in the U.S. has been relatively stable in the first half after a prolonged hard market that began in 2018, according to Aviation Specialty Insurance president Matt Drummelsmith. So far this year, he said, aircraft insureds with “good loss experience” have seen only moderate increases, not the severe rate increases they experienced between 2018 and 2021, he noted.
“This has brought some predictability to many aviation insurance buyers who have experienced significant rate increases and additional underwriting scrutiny since 2018, Drummelsmith said. “The moderating rate curve is expected to continue throughout 2022 for many segments of the aviation industry. Even though the rate environment appears to be stabilizing, underwriting standards remain high across the industry, and underwriters continue to seek rate increases on most renewal accounts.”
On a positive note, he said a new carrier entered the aviation insurance market in the first quarter, bringing additional capacity into the marketplace and a more competitive environment among underwriters. “We have also seen existing carriers looking to expand their offerings and appetite. The combination of a new market entrant and the potential expansion by existing markets has helped alleviate the capacity shortcomings experienced since 2018,” he concluded.
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