The airline insurance market experienced a favorable second quarter (Q2 2024), driven by increased capacity and a competitive landscape for buyers. According to Gallagher Specialty’s latest “Airline Insurance Market Update,” the combination of rising rates in previous years and a decline in average claims has drawn more capacity into the market, fostering heightened competition and a shift in focus away from strict underwriting practices.
Insurers are vigilant regarding the adequacy of ratings and the allocation of capital. Positive renewal conditions persist, particularly for airlines demonstrating strong loss ratios. Conversely, those with higher loss ratios are subject to intensified scrutiny.
The quarter also witnessed notable incidents, including a pressurization issue with a Korean Air B737 MAX 8 and a turbulence-related fatality involving Singapore Airlines. These events underscore the importance of robust emergency response measures, especially given the increasing frequency of turbulence-related incidents.
In terms of pricing, the Hull War segment has shown signs of stabilization, while AVN52E prices are trending upward. Overall, the current market dynamics favor buyers, with expectations of continued positive renewal outcomes in the near future.
