Page 39 - 2016 State of the Market from AmWINS
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In aviation, pricing has not yet pulled Other news in aviation insurance is the The insurance market hasn’t quite caught
out of the nosedive it has been in for the explosion in popularity of unmanned up to that change. Coverage for drones
past several years and a drop in revenue aerial vehicles (UAVs), or drones. “The is typically not available on general
is having a marked impact on aviation industry is rapidly changing. Many liability forms, pushing many companies
insurers’ operations. industries that wouldn’t ordinarily to standalone forms and the E&S market.
have aviation-related exposures are “We have a steadily growing amount of
“Ever-softening conditions and buying a small fleet of drones,” says business related to drone operations,
an abundance of capacity are still Jim Holinka, senior vice president and as well as resources and market access
producing pricing reductions, with no casualty broker at AmWINS Brokerage in that we can deliver to retail agents and
sign of hope,” says Thomas Thompson, Chicago, Illinois. brokers,” Holinka says.
director of the aviation division at THB
Group in London. “At the same time, • In automobile primary liability, renewal increases of 5 to 10 percent are common.
continual downward pricing as well • The departure of Lexington from the excess market created significant price
as mergers has led to several carriers
cutting staff and putting their aviation increases for limits of up to $30 million.
underwriters on notice.” • Lloyd’s is expanding its presence in the transportation market as domestic carriers
Unfortunately for underwriters, if they are pulling back.
don’t play ball there is a long list of other • Physical damage remains competitive, especially in motor truck cargo.
markets that will. “We’ve seen good, • Aviation is extremely soft, with drops in revenue beginning to impact carriers’
clean accounts take sizable reductions
with their current carrier yet still move operations.
to a new carrier because people are
scrambling to grab whatever market
share they can,” says Thompson.
