0:19
Hi, I'm John Rooley, CEO of WTW Global Aviation & Space and I'm delighted to share with you our update of current Q1 2024 market conditions.
0:31
Thankfully, hull and liability insurance has broadly remained profitable with no reduction in capacity or changes in conditions.
0:37
And so insurers are competing for market share which is driving good deals for our clients.
0:43
Clients with exposure growth or healthy loss records are faring particularly well.
0:49
How war insurance has stabilized and whilst rates are still creeping up, this is at a much more sensible pace like plus 10 or plus 20%. Excess AVN 52 has also seen a tempering in rate increases which are now running at circa 30%.
1:06
Some commentators might suggest that both of these markets will be flat by half year, which is obviously great news for customers.
1:15
Contingent risk renewals are flat-ish, but we expect some positive disruption in this segment during 2024 after successive years of lofty rate change having ballooned the premium pot.
1:27
However, there are court dates set in Q2 and Q3 for the Russia claims and the outcome of these cases could see a rapid change in conditions.
1:36
Aerospace risks are broadly flat, with many manufacturers still choosing to opt for a longer term placement solution.
1:43
However, reductions are still available for clients with a desirable risk portfolio or where lower limits are driving increased competition.
1:53
General aviation risks are seeing flat or with some rate reductions for sought after risks.
2:27
However, the GA market eagerly anticipates the July 1st renewal date when the majority of the world's major rotor wing risks renew with expectations that it will be very favourable for good operators.
2:40
Surplus capacity exists as insurers look to grow market share, so expect some rate reduction in there.
2:48
The space insurance market buying conditions have become challenging for clients, particularly for risks with limited flight history.
2:55
2023 market results were extremely poor and 2024 has started with a major claim announcement.
3:02
So our global in space team anticipates a continued hard market environment.
3:07
So that's the update and do reach out to me or your WTW contact if you need any further information.
3:13
Thank you.
