Brokers say that pricing conditions in the General Aviation market, which covers everything from propeller-driven planes to corporate fleets, range from flat to some buyers seeing some rate reductions.
Jeff Bauer, president of Chicago-based NationAir Aviation Insurance, a brokerage that specializes in Aviation insurance, says capacity remains ample.
Where there is some price sensitivity, however, is in coverage for helicopters, where rates are firmer and capacity is less than for other corporate-fleet insurance.
The reason for this is there is greater "loss sensitivity" with helicopters than with other aircraft.
"Those rates are firmer than a corporate fleet; we're not seeing decreases," says Bauer. "But we're not getting huge increases either. It is still minimal."
Peter Schmitz, CEO of Aon Risk Solutions Global Aviation Specialty, notes there are about 30 insurers in London and the United States that write General Aviation business. When you add in reinsurers, Lloyd's syndicates and other local markets, that number rises to around 50.
Bauer points out that Australia-based QBE and Swiss Re entered the space at the beginning of last year, adding more capacity to the U.S. marketplace.
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