Page 39 - 2016 State of the Market from AmWINS
P. 39

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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.
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