Industry News

February 2001 Issue

Rates on the Rise

Big losses and spotty competition have brought back a hard market. Modest singles are the winners, twins and turbines the losers.

If the party is all but over on Wall Street, the crowd may soon be thinning noticeably in the aviation insurance biz.

After more than a decade of competitive rates for aircraft owners, nearly everyone in the insurance business is talking about the latest “hard” market. What that means, simply, is that premiums are rising and you’ll have to jump through more hoops to get the coverage you want.

Why? Complex reasons, really, but a leading factor is that underwriters have been suffering significant losses and many haven’t seen much if any profits. Further, the big underwriters are consolidating into fewer yet bigger companies, something that doesn’t bode well for competition.

It’s no...

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