Marsh Specialty’s Aviation practice has published its latest insurance market update.
The report provides an overview of the general aviation, airline, and aerospace insurance market conditions as we head into the fourth quarter.
- As we exit the third quarter of 2023, reinsurance costs continue to increase, largely fueled by the retrocession (retro) market. However, in most cases, the increases are not passed on to insureds, but rather insurers appear to be absorbing much of the cost.
- High inflation is impacting operating costs for insureds across the aviation industry, adversely affecting the value of attritional losses.
- At an operational level, competition to hire and retain experienced staff continues to impact the post-pandemic return to service. To counter this during the third quarter, several airlines further invested in crew training via new academies and bursary schemes to better manage operational and people risks.
For more detailed analysis on the market conditions, download the report in full.