Air frequency continues to stabilize, with conditions "more positive" for buyers this year than they have been for some time, according to A.J. Gallagher & Co.
The broker expects further deceleration in general aviation, excluding any major loss event.
In the latest issue of its Plane Talking risk bulletin, Gallagher said that prices began to stabilize for airlines during the first quarter of this year, and the trend continued into the second quarter.
"Interest rate hikes are now moving from double-digit territory closer to high single-digit numbers," said Nigel Weyman, global director of Gallagher Aerospace. He added that the "right" risks see the lowest interest rate increases, while reduced exposures win some airlines premium reductions below the stated policy minimum.
"As the aviation industry's recovery is slower than expected, insurers acknowledge the need to continue to apply a tailored response to both premium relief requests and renewal pricing," said Weyman.
Capacity for aviation risks increased during the second quarter, with several new entrants and dormant capacity encouraged return to market through more sustainable pricing and low loss levels over the past year., said Weyman.
"Increased capacity is a key factor for The recent slowdown in interest rate hikes, "although the evidence comes towards the end of the year when flight renewals take off," he added. maintained a strict choice of risk with capacity lower for larger hull values and higher liability limits.
"For the perceived 'right' risk, however, there is a 'struggle for quality', and many insurance companies will now use larger shares on competitive terms," says Matthew Trundle, division manager at Gallagher Aerospace.
"There is continued optimism that the general aviation market is now over the worst and not subject to heavy losses; we expect this trend to continue in the coming months, ”said Trundle.
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