Market Update: Expect the Unexpected
If you’ve been keeping up with Squawk Box since late summer 2018, you know that the aviation insurance market is in a bit of upheaval at the moment. We call this a “hardening market.” In fact, even that could be construed as a gross understatement considering some of the changes we’ve seen over the past few months. To be clear, this isn’t a market in crisis (as it was post-9/11); rather, it’s more like a market in correction — a market that needs to find sustainability after more than a decade of price reductions.
As is the case with all commodity markets, it will swing back the other way in due time. However, with fatal accidents (both airline and general aviation) making headlines again, it serves as a reminder that no matter how well-managed they are, no flight department, corporation, or business has any room for complacency. Although your next renewal cycle may be a bit different from what you’ve been used to in years past, know that we’re always doing whatever is possible to ensure that the best products and prices are on the table.
That’s been our promise since day one and will remain as such, even when the markets are less than friendly.